SAP BusinessByDesign creates tensions with ecosystem partners

The structure of the new SAP BusinessByDesign ecosystem, which sees partner software developers contribute enhancements to the core technology, is creating tensions for some companies involved, according to software services provider and SAP partner 2E2.

The company was speaking at a SAP roundtable yesterday, which saw SAP SME customers and partners discuss the company's plans for the future and its SME offerings including BusinessByDesign.

Head of software solutions at 2E2, David Maitland, explained that the quick rollout of new technology to SAP's SME customers is difficult for traditional SAP consultants who are not used to the pace of change, with new applications available every 12 days or so, and new versions of the core technology being released every six months.

"We are not using traditional SAP consultants to roll out BusinessByDesign solutions currently, the model is so different from the one they are used to," he said.

Maitland explained that another issue for partners involved in the SAP ecosystem was the fact that they are potentially developing similar software concurrently, meaning that a return on work done is not guaranteed.

"In an ideal world a company will invest and receive a return, this may not be the case with this SAP ecosystem, however, the reach is potentially broader. Being involved in the SAP SME ecosystem means that new developments potentially reach more customers."

SAP SME customers at the event included Andrew Leese, IT director at Tennants Fine Chemicals. The company has just rolled out SAP's Business ByDesign to its 100 staff. This cloud-based BusinessByDesign solution has reduced its annual IT running costs by 35 per cent, according to Leese. He added that the roll out, which went live on 1 August, did encounter some small bug problems but SAP fixed these within a couple of weeks.

Another customer speaking at the event was Keith Ross, company secretary at Ipeco Holdings, which manufactures flight deck and cabin interior equipment.

Ipeco rolled out SAP Business All In One to 250 users across multiple sites including a US subsidiary five years ago.

Ross explained that on implementing the SAP technology it realised that some of its processes would be more efficient if they were reconfigured.

He went on to say that he is not looking to move to the cloud, neither is he making use of business analytics available within the SAP technology.

"We are a manufacturing company, and that is our day-to-day business. SAP enables us to run our main business and there are only so many hours in the day. Business analytics is something we will consider further down the line," he said.

Some 80 per cent of SAP's customers are SMEs and 30 per cent of its revenue comes from these customers.