Friday, December 4, 2009

'Collaborative Commerce': ERP, CRM, e-Proc, and SCM Unite! A Series Study: SAP AG

In the early 90's, ERP came of age. Everyone had to have the functionality ERP packages promised. Since then, as Web and Internet technologies have matured, CRM on the front end, and e-Procurement and Supply Chain Management on the back end, these packages have come into their own.

Now in 2001, the catchphrase is "Collaborative Commerce," where we unite all of the above elements into one coherent system within and between organizations. This is the Big Kahuna, the zero latency, fully transparent, 360 degree exposure that is the stuff systems integrators dream of. Is it here? Are the technologies mature enough? Simple enough?

This, the fourth in a series of articles on Collaborative Commerce (C-Commerce), takes a look at the fresh, new efforts of SAP AG, as they expand their software footprint and welcome outside help and inter-application communications.

First in the series was an examination of Collaborative Commerce.

Second was a look at J.D. Edwards.

Third was a look at Baan and Invensys.
SAP has long been the kingpin in the ERP world. With probably the most broad set of features, a large marketing machine, and a subsequent reputation as "the big solution for the big players," SAP has dominated in the ERP space for large corporations. Rightfully so based on technology. Their downside has always been their approachability, cost, long implementation and training times, and less-than-simple product upgrades.

SAP Crosses the Chasm

Trying to determine just when, and even why, the major power players at SAP decided to almost turn the company on its head by opening itself up to alliances, absorbing other companies' technologies through acquisitions, and even opening up its software to work friendlier with other, non-SAP software components, is difficult to pin down. But that is just what it has done. SAP's new tagline is "mySAP.com: Solutions for the New, New Economy - The Integrated E-Business Platform for Any Industry." This is the SAP, for all its warts and thorns, that we have grown to know and love? No. They have crossed a strategic chasm, embracing the Internet while embracing partners and competitors alike, and there seems to be no turning back. Witness just some of their actions:

April 2000 - SAP AG and Microsoft announce the intention to bring mySAP.com functionality to Microsoft's Pocket PC platform. "SAP is furthering mySAP.com to empower people working on customer relationships with key information they need on mobile devices, including the Pocket PC," said Peter Zencke, member of the executive board, SAP AG.

May 2000 - SAP announces a strategic alliance with Nortel Networks to develop and integrate industry-specific customer interaction solutions that will extend the scope of collaborative customer relationship management (CRM). With the agreement, SAP would embed Clarify's eFrontOffice CRM functionality into its mySAP.com offering. In a statement coinciding with the agreement, Peter Zencke, comments: "Enabling collaborative virtual communities of companies to present one face to their joint customers, SAP and Nortel Networks will deliver a new quality in customer relationship management." The agreement would enable mySAP.com to present customers with multi-channel (Web, phone, fax) access to a company's Customer Interaction Center (CIC). The agreement would also bolster a company's ability to share information amongst and between it's employees, customers, suppliers, and partners with tie-ins to SAP's Supply Chain Management (SCM) functionality to create "a holistic circle of commerce."

May 2000 - SAP and Nokia jointly announce development agreements to WAP (Wireless Access Protocol)-enable mySAP.com components, so that information can be viewed on any WAP-enabled device, such as certain high-end cell phones from Nokia and other cell phone manufacturers.

May 2000 - At the company's yearly international conference, SAPPHIRE, the company announced that they were going to establish an integration center in the United States , to be opened in late 2000, to build "preintegrated, preassembled, SAP-certified, SAP-supported, multi-vendor functionality that fuses mySSAP.com and leading third-party applications into an overall solution that best meets customer needs."

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