“Innovation distinguishes between a leader and a follower.”
Steve Jobs, Apple founder
Innovation is widely seen as the key source to gaining and sustaining competitive advantage, continually striving to better meet customers’ needs. SAP continue to remain focused and are committed to providing software innovations rather than being tempted by the acquisition opportunities which their rivals such as Oracle have been quick to take up.
“All in one is nice for the vendors. They control the relationship more and can pitch the ideal of an optimized technology stack. But they’re really sub-optimising innovation. Customers don’t buy stacks. They buy innovation, and that’s all in the software,” say Bill McDermott, SAP co-chief executive.
But there’s a problem with this. SAP isn’t known for innovation.
McDermott had an answer for that too. Today at the DEMO conference in Santa Clara he’ll unveil a series of analytics tools that he calls “a game changer”. In a recent interview with Victoria Barrett for Forbes, she said he whipped out his iPad (promising that everyone at SAP would have one soon) and showed her the full view of a company’s sales, with drill downs to regions, with details on inventory levels.
“The head of company has the same view, instantly, as a guy on the factory floor,” McDermott explained.
If it catches on, it will shift how companies operate. Being a middle manager no longer means simply sending news up the chain, and priorities down. That news is already at the top of the change, the second it happens. McDermott is clear here: “We’re disintermediating middle management. Their jobs have to change.”
He figures using data better will contribute to a 50% cost savings in IT organisations.
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