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SAP SME Day: Business ByDesign deep dive

Up next is a deep dive on Business ByDesign, the SaaS offering for SMEs. The deep dives so far have been kind of shallow, and mostly centered on sales, marketing, pricing and packaging of the products rather than much to do with functionality. We’re also running 45 minutes late, and seem to be getting later with each session.

This session is particularly interesting because of the analogy to SaaS BPM: these are mission-critical business systems, responsible for the day-to-day business processes, and there’s some significant issues with customer acceptance of their core processes existing in the cloud.

I hadn’t seen Business ByDesign before — somehow I missed it at SAPPHIRE — so it was interesting to have Rainer Zinow, SVP SME Global Services, give us a demo.

The system is role based, so that functionality is exposed depending on the user’s role. Apparently, there’s some basic document management, but we didn’t see that.

The system is built on an in-memory architecture for both transactions and analytics, using a search engine rather than a database (similar to some ideas that I saw at FASTforward); transactions cause database writes, but client applications are always served from memory.

There are some pretty complete analytics available, where you can drill down into specific items of interest, and even link directly back to the transaction on the ERP side, something that you couldn’t easily do with non-integrated BI.

There’s some lightweight workflow, really just manual routing to a person’s inbox that also allows a work item to be forwarded to someone else.

One of the most interesting parts was exposed when he demonstrated saving the online reports to Excel: the Excel version can be converted to contain formulas that point back to the original data source, which are actually pointers to web services. The reporting implication is that you can save the Excel report, then come back later and update it with point-in-time data simply by refreshing the data source; even better is that this set of web services is available to any environment, not just Excel, allowing you to build mashups or other applications that access the core transactional data.

This sort of hybrid model for SaaS is nice, where you can do everything in the on-demand environment, but also be able to download some desktop tools or build mashups that link directly to the online data.

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SAP SME Day: Prasad Akella with Business All-in-One deep dive

I missed the late-morning sessions, but I’m back here for Prasad Akella, Senior Director of SAP Business All-in-One Solution Marketing.

We heard about some of the new integrations with All-in-One: just announced last week, the CRM 2007 product is now tightly integrated with the All-in-One functionality, providing marketing, sales and service components. Also, the Business Objects Edge Series integrates to provide analytics and visibility. Other than that, there’s not a lot here that interests me: as with this morning, most people in the audience seem to be a lot more interested in pricing, packaging and system configuration than I am; I’m guessing that some of them make their living helping clients to wade through this sort of information.

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SAP SME Day: Jeff Stiles with portfolio update

Jeff Stiles is back to give us an update on the SME product portfolio, and there’s an interesting tie-in to yesterday’s message at the Business Objects day: the portfolio includes both business management and business intelligence, with a pretty strong emphasis on how BI adds value to SAP’s traditional business management.

He went through the entire SME portfolio:

  • Business One, their small business on-premise solution, sold only through channel partners.
  • Business ByDesign, their new on-demand service that provides a single end-to-end business solution, targeted at fast-growing midsize companies that don’t want to built a large IT infrastructure, and typically have less than 100 users. There are a number of pre-configured processes built in, intended to support common business processes without requiring extensive customization. Business ByDesign is available only in US, UK, Germany, France, China and India; the restriction in geography for a SaaS solution seems to indicate that this still requires a significant amount of effort at the customer location in order to sell and service the customer.
  • All-in One, for midsize companies that need a more customizable solution.
  • Analytics with Business Objects.

As you can likely tell by the volume of notes, we spent most of the session with audience questions and comments on Business ByDesign. The sessions this morning have been pretty basic, and I’ve learned way more about SAP sales channels than I ever wanted to know; hopefully we’ll get more detailed product information as the day goes on.

There’s an online tool to help figure out which SME tool best fits the customer requirements, based on five factors: the way you do business, your budget and timelines, your IT expertise and perferences, the way that your employees work, and your future growth plans.

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SAP SME Day: Glenn Wada with business update

After an intro by Jeff Stiles, SVP SME Solution Marketing, Glenn Wada, GM US Strategic Growth Enterprises Group, gave us a business update on SAP’s small and medium enterprise (SME) efforts.

75% of SAP customers are SME, although only about 30% of software sales (>1B Euro). SAP defines SME is anything under $1B in revenue, regardless of which product that they’re using, then further stratify that into “small” (under $50-60M), “medium” (up to $300M) and “upper middle” ($300M-$1B). This latter “UME” band is served by the standard SAP direct sales channel, whereas customers below $300M in revenue are served by Wada’s group, which uses a hybrid direct-channel sales model. SAP owns about 30% of the SME market, and continues to grow this market share through their focus on high-growth verticals: high technology, renewable energy, oil & gas, life sciences, services, and retail.

Taking look at the product suite, the SME offerings are Business One, Business ByDesign and Business All-in-One (although keep in mind that some of the UME’s are likely using the SAP enterprise products since the SME distinction is made by revenue, not by product). SAP believes that they can continue to service a company as it grows by shifting them from one product to another — although I’m sure that the transition is anything but painless, if they’re a competent incumbent, they have a good chance of keeping customers as they out-grow the lower-end products.

There will be more detail on the SAP SME product portfolio throughout the day, but here’s a summary:

Business One

  • Single business application
  • 20k+ customers
  • Targeted at small businesses; these businesses are looking at moving to ByDesign or All-in-One by the time that they hit $50-60M in revenue

Business ByDesign

  • Complete, adaptable
  • On demand service
  • 150 customer engagements
  • New business model
  • Focus on 6 key markets
  • 5,500 registrations

Business All-in-One

  • Configurable and extensible
  • 12,300 customers
  • New release based on business process platform, including CRM

I’m a newbie to the SAP SME space (and don’t really know all that much about SAP’s enterprise products either, except as I bump up against them in some of my large clients), and I definitely feel like the least-informed person in the room.

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Business Objects Summit closing Q&A

Jonathan Becher hosted a wrap-up Q&A with Doug Merritt, Marge Breya and Sanjay Poonen. I’ve consolidated the responses rather than attributing them to the individuals:

  • On reasons for Business Objects’ continued growth: major contributors include having the SAP sales force also selling Business Objects products, and expansion of the product suite to include GRC and EPM. Also, synergy of two leaders in different markets coming together to create something bigger than the sum of the parts.
  • On portfolio roadmap for products being sunsetted or merged (a.k.a. the stuff that I wasn’t allowed to blog about earlier): it’s probably accurate to summarize that some of the SAP BI products will be discontinued but the customers will be migrated to appropriate Business Objects products, and there will be a few products that are merged.
  • On the growth of on-demand BI, expect to see some of the Business Objects applications (as opposed to just the platforms) offered using a SaaS model, although there’s nothing definite being discussed here.
  • On the link between BI and business rules, which hasn’t really been mentioned explicitly today: operational BI is part of their portfolio, and they’re working on ways to integrate more closely with BPM, BAM and decisioning.
  • On open source: they’re not seeing stress from open source products so are working on making their current successful OEM strategy work for them rather than considering releasing open source products.

After the panel, Becher did a summary about closing the gap between strategy and execution, and the trends that are driving innovation in business intelligence:

  • Unified information, moving from structured information generated within the four walls of the organization, to structured and unstructured and internal and external information
  • Collaborative decisions, moving from individual contributors within functional silos, to teams collaborating and communicating across boundaries
  • Business network optimization, from point relationships with customers and suppliers, to a dynamic network of partners

Business Objects’ goal: to transform the way the world works by connecting people, information and businesses. A bit ambitious, but they believe that bringing together BI, EPM and GRC is truly transformational.

That’s it for the Business Objects Influencer Summit; I’m staying on here tomorrow for the SAP SME day and will continue blogging then.

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My favorite Business Objects executive quote of the day

“Oracle price-gouges customers even more than we do.”

Although Dennis disagrees with my recollection of the sentence structure.

Update: Dennis now agrees with me, and expands on the context.

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Fireside chat with Doug Merritt at Business Objects Summit

Keeping with SAP’s excellent blogger relations, a few of us bloggers had a chance for a quick chat with Doug Merritt about acquisitions in the space, the “walking dead” of BI vendors, popular BI applications, SaaS BI, go-to-market strategies, the transition to being part of SAP, new product segments, selling into big accounts versus mid-market, the challenges of distribution, and recent maintenance fee increases. Interesting stuff.

This is my first Business Objects event, and I’m still getting used to hearing the insiders refer to it as “bob-j” (presumably from the pre-acquisition ticker symbol).

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Business Objects Summit: Franz Aman on BI Platform

Franz Aman, VP of Product Marketing, gave us a product roadmap of the BI platform within Business Objects and SAP. Unfortunately, he declared the session as being under NDA, even though a lot of what he talked about had nothing to do with future product directions, so I can’t share it with you.

The true innovation, which I hope that I’m not breaking NDA to report on, is the use of a background gradient that goes from SAP yellow to Business Objects blue in the boxes that represent products jointly developed by SAP and Business Objects:

Secret SAP-Business Objects background

Shhhh…you didn’t see it here.

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Business Objects Summit: Sanjay Poonen

Moving from business intelligence to the applications that rely on business intelligence, we heard from Sanjay Poonen, SVP and GM of Performance Optimization Applications. He started off with the cycle that we saw earlier in the day, with insight being linked to execution and process optimization, and focused on the governance, risk and compliance aspects of this cycle.

EPM 7.0He sees business intelligence as a central contributor to EPM, GRC and ERP, and with SAP having a leadership position in all of these, they can provide a total application suite for the CFO. Their product portfolio includes both SAP and Business Objects offerings:

  • SAP Strategy Management
  • Business Objects Financial Consolidation
  • SAP Business Planning and Consolidation
  • SAP GRC Process Controls
  • Business Objects Profitability and Cost Management
  • SAP Spend Analytics

These tools are becoming more collaborative, since almost all situations involving EPM and GRC will require a degree of collaboration between different people within an enterprise, and pull in information from both internal and external sources to create a more complete view of an business situation.

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Business Objects Summit: Marge Breya on product portfolio

Marge Breya, EVP and BPM of the Business Intelligence Platform group, gave us a whirlwind briefing on the product portfolio, which is made up of Business Objects assets, some SAP assets, and new products being built jointly:

  • Governance, Risk, Compliance (GRC), where they hold the overall #1 position worldwide with a 21% market share
  • Enterprise Performance Management (EPM), made up of financial performance management (#2 with a 20% share) and operational performance management (#1 with a 23% share), the latter of which includes both standalone and embedded components
  • Information Discovery and Delivery, made up of query, reporting and analysis (#1 with a 24% share) and advanced analytics (just introduced)
  • Enterprise Information Management (#4)

Not surprisingly, they are pursuing a complete integrated stack with other SAP products, but they also integrate with products from Oracle, IBM, Microsoft and independent application and database vendors.

She then introduced John Mayer, director of consulting and testing services at Apotex Group (a pharmaceutical firm), to discuss their use of the products: they’re a big SAP user, and are also using Business Objects in several areas. They’ve been giving the end users tools that they can use to have a view into the corporate data for ad hoc queries, and having seen the value of that, it’s spreading across the organization and helping to drive their data warehouse initiative. IT keeps overall design control over the universes and databases — you don’t really want users doing this since they may not understand the implications of, say, searching on a multi-million record table using an unindexed field — but the users create their own queries and reports.

Breya continued with the message of making this easier for the not-so-technically-minded to create their own queries, reports and dashboards. Their intelligence platform puts a semantic layer over the messy technical stuff (metadata management, master data management, etc.), and creates a common services infrastructure for finding and using those information components as services from the analysis and reporting layer.

They have a large suite of information consumption tools in that query, analysis and reporting layer:

  • Crystal Reports (production reports with drillable visualization)
  • BI Widgets
  • BI Mobile
  • Polestar
  • Web Intelligence (ad hoc reporting and analysis)
  • Text Analytics
  • Voyager (OLAP advanced analysis)
  • Predictive Workbench (advanced statistical analysis)

Today, they’re announcing a new product in that suite: Xcelsius Present, a data visualization tool. From today’s press release:

Xcelsius PresentXcelsius Present is a data-visualization tool that transforms ordinary, static Microsoft Office Excel spreadsheets into captivating visuals and allows business users to share them via Microsoft PowerPoint or Adobe™ PDF files. Through interactive data visualizations and a simple, point-and-click interface, Xcelsius Present enables business users to create professional-looking visuals in just minutes, resulting in engaging experiences for presenters and audiences alike. Using interactive graphics – including dials, charts and gauges that clearly convey business cases and demonstrate “what if” scenarios – business professionals can involve, inform and persuade their audiences in meaningful ways with stunning visualizations.

This is a sub-$200 product, aimed at a broad range of business users who want to add some nice visualizations to their spreadsheet data, but there’s probably also a consumer market for this as well; in fact, one of their online demos is a college cost calculator.

They’re also announcing Crystal Reports Basic for SAP Business One, allowing for easily customizable drillable reporting on SAP Business One data that can be shared with others.

She quickly coverred their data services portfolio, which provides all the usual data management functions but also data federation and management of unstructured data such as RSS feeds.

They provide on-premise solutions, but also have more than 125,000 subscribers for their SaaS BI offerings.

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Business Objects Summit: Partner Panel

Narina Sippy, SVP and GM of GRC at Business Objects, hosted a panel of three major partners: Lee Dittmar of Deloitte, Glenn Gutwillig of Accenture, and Dan Miller of IBM GS. Inevitably, this started with the “mine’s bigger than yours” comparisons, because apparently when it comes to Business Objects professional services practices, size does matter.

The most interesting part of the discussion was in response to an audience question about whether it’s possible to reach the nirvana of enterprise-wide information access and sharing, or if we’re stuck with unintegrated silos of information within enterprises. The panel felt that the leaders in moving to enterprise-wide integrated information management will gain such a competitive advantage — compliance, internal collaboration and other benefits — that it will force the rest of the market along quickly behind it.

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Business Objects Summit: Day 1 Keynote

I’m here in rainy Boston at the Business Objects Influencer Summit, which was kicked off with Jonathan Becher, SVP of Marketing for Business Objects. It’s a very process-oriented message (which explains why I’m here): using business intelligence to drive process efficiency, improve insight to close the gap between strategy and execution, and add flexibility to create new business processes that align operations to strategy.

He was joined by Doug Merritt, EVP and GM of Business User Global Sales (moving from a product role), who continued with the message of how total insight allows organizations to optimize business performance. He discussed a number of customer case studies, focusing on how their easy-to-use end-user tools are being used to solve real business problems.

He also showed the strong tie-in between business intelligence to core SAP systems: insight, strategy and decisions feeding into monitoring, process refinement, process execution and events.

It’s only been just over six months since Business Objects’ acquisition by SAP, a period when most acquired companies take a bit of a dip in sales, but they’ve managed to keep their numbers on an upward growth path.

Becher then introduced Dr. Robert Kaplan from Harvard Business School and Palladium Group, inventor of such business strategy and measurement concepts as balanced scorecard and activity-based costing. We’ve also been given a copy of his book, The Execution Premium — Linking Strategy to Operations for Competitive Advantage, which I look forward to reading. He walked us through the main concept in the book: closed-look cycle that links strategy and operations:

  1. Develop the strategy
  2. Translate the strategy
  3. Align the organization
  4. Plan operations
  5. Execution
  6. Monitor and learn
  7. Test and adapt

In the middle of this cycle are the strategic plan (e.g., balanced scorecard) and the operating plan (e.g., forecasts, budgets, dashboards), with links to the several steps in the cycle that either create the artifacts of the plans or are informed by those artifacts, as well as interacting with each other.

Sep 2 and 3 represent the creation of the balanced scorecard, and translating that into operational improvement programs (step 4) is a new focus in Kaplan’s book. And here we are again, talking about process — since that’s what step 5 is all about — and how balanced scorecard helps to determine which processes have the most impact on a business’ performance, and are therefore the ones that should be the focus of process improvement efforts.

Becher took us back around the cycle, showing how Business Objects is applied at each of those steps (except execution), which provided an interesting perspective on the different roles of Business Objects within cycle that we in the BPM world know as design-execute-monitor-optimize.

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Upcoming conferences

I’ve been sticking close to home for the summer, but my fall lineup is about to begin. So far, I’m definitely attending the following:

  • Business Objects Influencer Summit and SAP SME Day, August 12-13, Boston. This is an analyst/press event, not a public conference, but I’ll be blogging from there.
  • International Conference on BPM, September 1-4, Milan. I’m very excited to be attending this conference since it represents a lot of the academic research going on in BPM, not just what the vendors and analysts have to show. There are some great workshops lined up, such as BPM and social software; interesting sessions; and demos from some of the universities and research labs. You can find last year’s proceedings here.
  • The Appian user conference, September 8-10, Washington DC. This is the first time that I’ve attended an Appian conference, and I’m looking forward to seeing what all those new marketing dollars are buying.
  • The Gartner BPM summit, September 10-12, Washington DC. I’ve been to enough of these lately that I don’t need to attend the whole summit, but since I’m in DC that week for Appian’s conference, I’m adding one more day for Gartner. I think that it’s pretty clever for Appian to schedule like this: it should drive up attendance at their conference, since Appian customers/partners flying in for Gartner will figure that it’s only a couple of extra days to do both.
  • OMG BPM Think Tank, October 6-7, Chicago. I’m on the program committee, and will be leading a roundtable on achieving collaboration between business and IT in BPM on the first day.
  • Business Rules Forum, October 26-30, Orlando. I’ll be giving a presentation on mixing rules and process.
  • SAP BPM, November 17-19, Las Vegas. I’m giving a Jumpstart pre-conference session, an introduction to BPM, on the 16th.

Given that I fly everywhere on Star Alliance, this will bump me over the 35,000 miles for the year that gives me Aeroplan Elite status for 2009, without which I really don’t want to fly.

From a disclosure standpoint, my expenses are being paid for the Appian conference, the Business Rules Forum, and two SAP events; for the latter SAP event, I’m also being paid to deliver the half-day training session.

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SAPPHIRE: Wolfgang Hilpert on BPM Overview

I’m picking and choosing my sessions carefully, in part because I have some prearranged meetings specifically about BPM. Here with all my Enterprise Irregulars blogging compatriots (many of whom I’m meeting in person for the first time), we all were given a personalized schedule of meetings tuned to our particular area of interest — very well organized, and still leaving some time in the schedule for me to go to some additional sessions.

I had a one-on-one meeting with Wolfgang Hilpert, SVP of NetWeaver BPM, this afternoon; funnily enough, just after I attended Ginger Gatling’s session this morning, I had lunch in the press area, and when I mentioned that I’d seen the session on the new SAP BPM, three pairs of ears at the table swiveled around. These three, who I didn’t know (nametags, unfortunately, hang below the level of the table when seated), gave me a light grilling on my opinions of what I had seen; although I figured that they worked for SAP, it wasn’t until they stood up that I saw Hilpert’s name tag.

By the time that we had our meeting, then, he knew that I’d seen a product overview, and he’d already heard my views on it, so we could jump right to some of the good stuff. As I suspected, and wrote in my earlier post, they’re not looking to compete in the general BPMS market for non-SAP customers, but see themselves as becoming the BPM tool of choice for SAP customers. More than just an appendage to SAP, their BPM will allow for orchestration of web services within heterogeneous environments (as do all other BPMS), plus provide the services repository and UDDI registry. He also sees them as eventually being able to identify SAP business objects directly as part of the orchestration, allowing for easy passing of the object from one step to another; another tight coupling with SAP applications that will win them an advantage. Their long history with enterprise software likely does give them a unique insight into how enterprises work, and they have innovations such as user role abstractions on a business level through interaction with other enterprise systems that contain role information, not just LDAP directories.

They built the BPM part of the product themselves after surveying the market and not finding what they wanted at the right price (I asked if Lombardi was too expensive but didn’t get much of a reply :) ), then bought in the rules through the Yasu acquisition. The business rules can still be used as a standalone rules/decisioning engine, but they’re also tightly integrating it with the Eclipse process modeling environment for integrated lifecycle management of processes and rules. They also perceive their product as being more scalable, but frankly, every vendor says that to me so I’d like to see some benchmark data on that.

The composition environment is currently in closed beta, will open up to a few more beta sites over the summer, then be released in September. Because of the extensive beta period, they’re hoping to shortcut the usual ramp-up process and have this generally available shortly after that.

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SAPPHIRE: BPM in SAP NetWeaver

My first time at SAPPHIRE, and I have one initial impression: this conference is huge. Most of you probably already knew that, but for me, 1,500 people at a conference is big, and this one is 10 times that size. The press room is the size of a regular conference’s general session ballroom. I just hiked 15 minutes to get to a session. More sessions run simultaneously than you’ll find in total at most conferences. There are 30 official conference hotels. Wow. And I have to report that there’s 5 bars of free wifi coverage everywhere in the conference center.

After a review of the massive schedule, I finally made it to a session: Ginger Gatling, SAP NetWeaver BPM Product Manager, giving an overview of the BPM component in SAP, including a demo and some thoughts on the future functionality. She started with a discussion of the evolution of BPM, including the drivers that have moved us from the old-style workflow and EAI to the present-day collaborative design environment where multiple people might be working on modeling different components, from human-facing processes to rules. For SAP, however, a lot of this is future state, not what they have now in the shipping product.

Currently, they offer the following functionality through various products and functionalities:

  • Manage business tasks across applications: manage and resolve business tasks centrally in one work list
  • Business process integration/automation: integrate SAP and non-SAP business applications and aut0omate the message flow between systems with an executable process model
  • Involve business users in automated processes for managing by exception: alerting in case of exceptions
  • Application workflow management: manage production workflow in your SAP application

Moving forward, there will be a more comprehensive BPM platform:

  • A composition environment for human-centric process modeling
  • Packaged processes, which are the same old processes embedded within SAP applications
  • Process integration for system-centric service calls

From a layering standpoint, the composition layer creates the process at the top layer, which calls the SAP core processes via web services calls; either layer can call into the process integration layer, which makes calls to other systems for system-centric integration. Around all of this is an enterprise services repository for governance, which can contain both the services that access SAP applications and those that access third-party systems.

IDS Scheer still holds an important position for enterprise modeling and business process analysis (including direct modeling of processes within SAP applications), but it appears that for now, composite processes will have to be remodeled in the new SAP composition environment. In the future, when BPMN 2.0 is released, they’ll use that (which will include BPDM for serialization) for transferring models between ARIS and the SAP composition environment. In other words, you can use ARIS to model the core SAP processes, then use the composition environment (NetWeaver BPM or whatever the "Galaxy" will be called on release) to extend the core processes, but these are two separate activities using two separate process modeling environments.

The new BPM product will include a graphical Eclipse-based BPMN modeler that directly translates to process execution using a shared model approach, and is embedded within SAP NetWeaver CE for an integrated composition experience, service-based connectivity and enterprise services repository. There will also be integration of business rules into the composite processes, using the Yasu technology acquired by SAP last year.

Eventually, they will evolve to a common process layer where it will be possible to use the BPM tool to extend core SAP processes, and have a single process model across both — this part is pretty exciting.

She gave us a demo of the process modeler, which was likely a lot more exciting to the rest of the audience than to me. :) Pretty standard BPMN, with some nice context-sensitive tools for creating the next step when you have one selected. There’s a direct link to the enterprise services repository to call a service at a step, or to a services registry, or directly to a WSDL file. There’s also a direct link to the business rules decision tables within the same Eclipse environment. From inside the rules modeling environment, it appears that there’s a connector to direct grab data from the core SAP environment, which would remove the need to have the composite process extract the data from SAP and pass it to the rules engine.

There were lots of audience questions, running longer than the allotted time; many of these didn’t mean much to me since I’m a SAP newbie, but there was some amount of excitement about how SAP BPM will replace Guided Procedures, which will be phased out as the BPM product releases become fully functional.

My immediate impression is that in the near term, they’re creating a BPM platform that’s fairly loosely coupled (via web services) with core SAP applications, which doesn’t appear to provide any advantage over using a third-party BPMS with SAP applications; in fact, more mature BPM suites are likely to provide greater functionality. In the longer term, however, there will be much tighter integration of BPM and SAP core applications, moving to a common process model and platform: this will be a significant driver for the adoption of this product by existing SAP customers.

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