Radical Business Model Transformation by Carsten Linz & Günter Müller-Stewens & Alexander Zimmermann

Author:Carsten Linz & Günter Müller-Stewens & Alexander Zimmermann
Language: eng
Format: epub
Publisher: Kogan Page Limited
Published: 2016-12-16T18:00:00+00:00

To further advance digital business and processes, in November 2014 SAP appointed Jonathan Becher as the company’s first chief digital officer. SAP’s CEO Bill McDermott explained his mandate: ‘Jonathan will not only be responsible for building a major new revenue stream for the company, he will also make Run Simple a reality for customers and consumers that engage with us digitally.’21 At the same time, Maggie Chan Jones was appointed chief marketing officer, and brought extensive cloud experience to SAP through having navigated Microsoft’s transition from on-premises to cloud business and having led the launch of Office 365. As a first step, SAP’s online experience was streamlined, which resulted in an elimination of over 80 per cent of the existing websites, the localization of global online content to the local markets, and the acceleration of online developments at reduced cost.

A special focus of the company’s digital activities was put on cloud buyers, as website and product are converging for this user group; hence providing a seamless journey for exploring, trying, buying and using solutions on the web needs to be achieved for the digital cloud buyer. Once this was achieved, the online information and online functionality were reworked to deliver an easy-to-grasp simplified view of the portfolio, clear and transparent pricing on the web, frictionless trial and subscription (‘try and buy’) directly online, and an experience that seamlessly connects solutions, support and community. For example, SAP S/4HANA free-of-charge trials are available for cloud and on-premises editions,22 in which customers can discover the value of the new suite across concrete roles and predefined scenarios, such as project manager, cash manager, marketing expert, purchaser and sales representative.

As the next step in the transformation journey, SAP started to combine existing online stores into the new SAP Store, where buyers can discover, try, buy, download and upgrade its software, services, education and content offerings. In January 2015 the SAP Store became publicly available. On this foundation the vision of omnichannel commerce and bundled sales across all lines of business could be realized. The SAP Store sells business analytics, mobile apps, cloud and first content and data offerings, all priced for individual purchase at typically under €1,000 with one-click buying. Having purchased software, the customer can either directly access the cloud system with the help of the access credentials or download it with the help of the individual licence key to run it on-premises. After-sales product and customer support is provided via the website. The SAP Store is also open to partners, who can publish and monetize their offerings though this low-cost channel and participate in SAP’s marketing campaigns. In 2015, the SAP Store was live in 32 countries, with about 10,000 online transactions and 1.4 million unique visitors.23 Beyond the SAP Store, the SAP Digital team drives the digitalization of commerce processes for SAP overall – eg fully productive trials, transparent online pricing, one-click registration, credit card billing, in-app purchasing and product and support communities – and showcases how SAP leads its digital transformation to C-level customers.

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