A recent interview conducted by Charlie Rose with SAP co-CEO Leo Apotheker and Harvard Business School professor Andrew McAfee touched on the future of IT and how it will continue to create competitive advantage for those who are able to integrate the best of business processes with the best in software applications.
For complete interview click on the link here:
While the discussion highlighted a number of topics in this arena it was of particular interest to hear Mr. Apotheker discuss how he will assure that SAP keep its marketplace leadership while keeping competitors such as Oracle at bay. As Mr. Apotheker agreed we are talking about, “technology available to everyone.”
So how exactly will SAP ensure their leadership position? Both Apotheker and McAfee discussed a future that will involve, “companies working in networks” and extended partnerships both wide spread and “loosely coupled.” McAfee pointed out that open source software has and will be a significant part of how development will continue in a less structured controlled fashion. Apotheker described SAP’s Development Network (SDN) and the instrumental part it plays in the exchange of ideas, and software improvements at the same time that this network looks for SAP to maintain control in a loosely interpreted description of “open source.”
I tend to agree with Mr. Apotheker’s contention that SAP SDN had been instrumental in exchange of ideas and community building effort, but to interpret that description of online community as an Open Source initiative of some sorts is little bit of a stretch. Actually SAP had been good at partnering with and collaborating with businesses to build its software business model, and “Process Factories” as Mr. McAfee described.
The strength of proprietary software like SAP is in its ability to map complex business processes and create quality software that is complete, integrates well and has the reliability that businesses can trust. The weakness however is that like any other controlled mechanism of software production, it lacks or is often behind in terms of technology, pace, usability, software development innovations happening in the industry. As with any software development organization the cultural, financial and business divers often limit or control its key resources in terms of software developmental direction.
So the question then becomes: How can proprietary software companies leverage the same scale, flexibility and rapid innovation advantages that Open Source community enjoys?
We believe that Knowledge Marketplace represents an analogue to Open Source in true sense for proprietary software vendors. Knowledge Marketplace allows Knowledge Producers and Knowledge Consumers to collaborate and co-create knowledge, training and solutions and at the same time recycle/reuse what is already built.
As an SAP consultant I always found myself delivering (80-90% of the time) the same solutions, configurations and information to different clients looking for consulting help. Even though the solutions differed slightly from business process of one company to the other, the underlying key knowledge content remained largely the same.
If we look closely the strength of Open Source is in the re-usability and openness to share the source code so more complex and innovative software can get developed faster. In fact to remain competitive in today’s global economy it is a must. As at a recent interview the Gil Cloyd, the Chief Technology Officer of Procter & Gamble points out.
As the pace of globalization accelerates and companies focus their attention beyond their usual field of operation, collaboration technology is opening up new ways to gain access to valuable knowledge from both conventional business partners and a far wider community. "In the areas where we do business, there are millions of scientists, engineers and other companies globally," says Proctor & Gamble's Chief Technology Officer, Gil Cloyd. "Why not collaborate with them?"
We are entering this arena of loosely confederated relationships that enables, consultants, businesses deploying ERP systems, thought leaders and others to mutually exchange best practices, knowledge and solutions directly in SAP and other ERP applications. Knowledge Marketplace provides a platform to turn an individual’s knowledge into a commodity to be shared or sold to others in need of that knowledge.
In turn, ERP vendors will derive the benefit of an expanding community of interested parties who will provide best practices and real world applications of their software.
An open Knowledge Marketplace platform will allow companies to interact with its employees, partners, customers, and users alike to co-create the next innovation in its space as it interacts as a social enterprise.
Many successful companies are using “crowd sourcing” as the new improved way of doing business. The truth is that by engaging your entire eco-system in the development process your strength and leadership far exceed than by doing this process alone.
More thoughts on this in future blogs…
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