FH Südwestfalen20 Jahre TBW

Der Wirtschaftsingenieur als Change Agent

Klaus LangenbergBusiness Unit Director SAP Norge AS30.10.2009

Disclaimer

”This presentation is a personal reflection

and only contains my personal views,

thoughts and opinions. It is not endorsed by SAP nor does it

constitute any official communication of SAP”

Warmup

Persönliche Potenzialanalyse!

Welche Aufgabe hat der Change

Agent?

CV Klaus Langenberg

1990 – 1994

Abschluss als Diplom Wirtschaftsingenieur FH

1993 – 1997

Consultant Itelligence AG

Finanzbuchhaltung/Controlling

Product Costing (MM/PP/FI-CO)

Integration Manager

1997 – 2003

Gründer und Managing Director Itelligence Norge AS

Startup from scratch: Koffer/Telefon

Ausbau auf 30 Mitarbeiter

IPO 1999

CV Klaus Langenberg

2003 – heute

SAP Norge AS

Projektleiter (3 Monate)

Business Unit Director/Country Manager Field Services

2005 Teilnahme an Top Management Seminar

150 out of 40500 Strategical Management Program

2007 Teilnahme Top Management Seminar India, Global Delivery Concepts

Alltime Aktiv auf Xing, LinkedIn

Ausgangssituation

Ziele

GAP’s & How we closed them

1

2

3

Der Wirtschaftsingeneur als Change Agent:

1: Ausgangssituation

SAP AG 2007 / FSMP / FS Strategic Imperatives & You / Bernd -Michael Rumpf / 0

SPM – 2006 Highlights

Services Profitability

Field Services Productization

ROI References

Customer Net Promoter Score

Active ISVs

Promotions From Top Talent

Product Profitability

Maintenance Lost (L4Q)

Customer Benefits Rating

Target Industries with #1 Rank

Partner Net Promoter Score

+ -

Missed Expectations on SW Revenue While Meeting Product Revenue

Operating Margin Exceeded Expectations

A job well done – are we really ready for the future?

We know basically what it takes to run this business successfully

Performing Transforming (?)

There are not many in our peer-group with such a performanceand profile

Profitability Organic growth Dealing continuously with new

products

Can we continue like this and is it enough?

Contribution to customers and SAP

Past 2008/2009 Future

Field Services Contribution

Financials

Significant challenges lie ahead of us

SAP Business-

Model

Service Market

Customers

Bridging IT and Business 100’000 customers

Flexibility, Consolidation

Reduced TCO Risk mitigation

Business Suite only 50%

BPP/eSOA as new paradigm

ERP 2005 as the basis

Enlarged Partner EcoSystem

Co-Innovation by Partners

Industrialised services

Distributed Delivery

Restructuring of Service Providers

It’s not the IF, it’s the WHEN and HOW STRONG.

Financials

Significant challenges lie ahead of us: Customers

Customers

Bridging IT and Business 100’000 customers

Flexibility, Consolidation

Reduced TCO Risk mitigation

It’s not the IF, it’s the WHEN and HOW STRONG.

Customer needs are changing

Source: IBM Global Business Services, CEO survey (765 CEOs), FKOM 2007

Extent of Fundamental Change Needed Over the Next Two Years

Moderate change

Little or no change

Past Level of Success at Managing Fundamental Change

Significant change

22%65%

13%

Little to no success

No change experience

Some success

Successful

Very successful

32%

15%

15%

33%

5%

23%Cost Containment

14%Business Process Innovation

10%New Markets & Channels

8%Compliance

5%Mergers & Acquisitions

23%Managing Relationships

New Products or Services10%

Source: SAP study

Financials

Significant challenges lie ahead of us: SAP Business Model

SAP Business-

Model

Business Suite only 50%

BPP/eSOA as new paradigm

ERP 2005 as the basis

Enlarged Partner EcoSystem

Co-Innovation by Partners

It’s not the IF, it’s the WHEN and HOW STRONG.

Be frontrunner for new applications and technology

Design the way forward

New solutions, user groups and platform

Across and beyond SAP

End-to-end support

Different way of working

SAP’s business process platform generates new opportunities and challenges

Financials

Significant challenges lie ahead of us: Service Market

Service Market

Industrialised services

Distributed Delivery

Restructuring of Service Providers

It’s not the IF, it’s the WHEN and HOW STRONG.

Training of consultants

Availability of standard Education offerings for partners/customers

Participation in testing activities

DEVELOPMENT RAMP-UP GENERAL AVAILABILITYTime

Productized Services

Global Delivery

Service Productization

DEVELOPM. RAMP-UP

Service Engineering

Proactive Feedback

Knowledge Management

Hubs

Installations

Creation of partner/customer enablement offerings

Changing the fulfillment model

Significant challenges lie ahead of us

SAP Business-

Model

Service Market

CustomersCustomers

Financials

Are We Ready?

Check

Film mit 28 sekündiger Dauer

Zählen Sie die Anzahl der Ballwechsel zwischen den weissen Spielern!

Basketballfilm

12 Pässe?

Die Moral der Geschichte

Selective Perception!

Welche Rolle hat der Change Agent?

15 Pässe?

Ausgangssituation

Ziele

GAP’s & How we closed them

1

2

3

Der Wirtschaftsingeneur als Change Agent

2: Ziele

Market Fit

Strategic Fit

Performance Fit

Ausgangssituation

Ziele

GAP’s & How we closed them

1

2

3

Der Wirtschaftsingeneur als Change Agent

The Objective is to Balance Contradictory Pressures

MarketFit Strategic

Fit

PerformanceFit

Will Today’s Service Portfolio Deliver on Our Strategy?

Three areas to test:

1

2

3

Market Fit Does it address changes happening in the market? Does it create sufficient value for our customers? Does it differentiate us from competitors?

Strategic Fit Does it support SAP’s key strategic objectives?

(such as market making for new products, expandedcustomer base/SMEs, leveraging partners to improvevalue for money and reach)

Performance Fit Can I continue to meet my budget? Can I maintain quality/integrity? Does it offer a career path for my people?

Our Portfolio Today?

Products c.v’s

Dividing Up the Service Portfolio: First Cut

PLAN-Services

Classic Implemen-

tations

RUN-Services

(IT Excellence)

Safeguarding/QA

Education

Assessing the Structure of Today’s Service Portfolio

Plan Services Business process consulting Business consulting type services Architectural services/concepts

Classic Implementations Prime implementation Subcontracted implementation Spot consulting (staff augmentation)

Run Services IT excellence, SLO, Upgrades

Safeguarding/quality assurance Education

Training, academy, e-learning Product

Mercury, RWD/Infopack, MaxAttention (AGS), Safeguarding (AGS), CDP, Etc

Alternative/Additional Ways of Looking at Our Portfolio

Software Mercury RWD/Infopack CDP

Projects Programme and project management Quality and risk management

Expertise/Spot Solution and architectural design Various types of spot consulting

Business and IT strategy consulting IT Excellence

SLO, Upgrade, etc Education

Training, academy, e-learning

What Are The Most Important Market Pressures hitting Your Business?

TheSqueeze!

Changes in PartnerBehaviour

Opportunities/Challenges

Responses

Changes in Products/Technologies

Opportunities/Challenges

Responses

Changes in CustomerBehaviour

Opportunities/Challenges

Responses

Changes AmongCompetitors

Opportunities/Challenges

Responses

For example:

Changes in Customer Behaviour Fixed price contracts versus “time and materials” More business users versus transaction users Increased influence of CEO/business heads versus IT in decisions Growth into customers with limited/no in-house IT capability Etc.

Changes in Partner Behaviour Pressure for increase value added Focus on efficiency/repeatability versus “one-off” projects More global fulfilment Larger number of less sophisticated partners

Changes in Product/Technology ESOA, BPP, Etc Pre-configuration More ISVs

Competitor moves Competing visions (IBM?) Competing processes, e.g. BPO, Salesforce.com

Will Today’s Service Portfolio Deliver on Our Strategy?

Three areas to test:

1

2

3

Market Fit Does it address changes happening in the market? Does it create sufficient value for our customers? Does it differentiate us from competitors?

Strategic Fit Does it support SAP’s key strategic objectives?

(such as market making for new products, expandedcustomer base/SMEs, leveraging partners to improvevalue for money and reach)

Performance Fit Can I continue to meet my budget? Can I maintain quality/integrity? Does it offer a career path for my people?

What is the Contribution of Different Offerings to FS/SAP Strategic Goals?

BProcess &Platform Services

Appl. Impl.

Contr

ibu

tion t

o S

trate

gic

Goal

Low

High

1

2

3

4

5

CustomerValue Add

MarketMaker

PartnerEnable

Mid-SizeEnable

Other?IndustrialFulfilment

Will Today’s Service Portfolio Deliver on Our Strategy?

Three areas to test:

1

2

3

Market Fit Does it address changes happening in the market? Does it create sufficient value for our customers? Does it differentiate us from competitors?

Strategic Fit Does it support SAP’s key strategic objectives?

(such as market making for new products, expandedcustomer base/SMEs, leveraging partners to improvevalue for money and reach)

Performance Fit Can I continue to meet my budget? Can I maintain quality/integrity? Does it offer a career path for my people?

Three Main Types of Shift in the Portfolio

Low High

Contr

ibu

tion t

o M

eeti

ng

Budg

ete

d P

rofit

Contribution to Strategic Goal

Low

High

Growth, Contraction,Outsourcing

Re-positioning

PerformanceImprovement

Tar

get

Pro

fita

bil

ity

Be

low

Ta

rge

tT

arg

et

Exc

ee

d

Ta

rge

tStrategic Fit 2010

Low Medium High

Size of B

ubbles = R

evenue Share

SAP Consulting Will More and More Become a Process Company

… towards a service-oriented Process Company

From Implementation Consulting today…

Source: Consulting Interview, 2010 view is inspirational indication

Tar

get

Pro

fita

bil

ity

Be

low

Ta

rge

tT

arg

et

Exc

ee

d

Ta

rge

t

Strategic Fit 2010Low Medium High

Size of B

ubbles = R

evenue Share

Industrialized Services

(3%) Executive Advisory Services

(1%)

Business Process & Platform Services

(6%)Quality

Assurance(12%)

Application Implementations

Services(75%) Business

Process & Platform Services

(35%)

Executive Advisory Services

(5%)

Industrialized Services

(8%)

Quality Assurance

(17%)

Application Implementations

Services(35%)

Replace, recruit, develop

PERFORMANCELOW HIGH

Key role of managers: Develop and Manage to

Improve Performance

Does not meet

expectations

Partially meets

expectations

Consistently exceeds

expectations

Exceeds expectations

Meets expectations

Always recruit A Players

Proper handling of low

performers

5% 5-10% 10%10%70-75%

Skill Transformation: What Are My Opportunities?B

us

ine

ss

IT

Field of Activity

SAP Comp. Profile

Customer Role

Legende

M = ManagerP = PrincipalS = SeniorC = ConsultantA = Associate

Programm Manager P-M

Change Management Expert S-P

Quality Management Consultant C-S-P

Project Manager S-P

Organisational Expert C-S-P

Strategic Analysis for Corporate Funct.& Industry Processes

Business StrategistC-Level

P-M Develop IndustrySolution PortfolioSolution Portfolio Strategist

CIO/CEO/Business OwnerSAP C Mgmt Marketing

P-M

Technical Studies & AdvisoryTechnology Strategist

CIO

P-M Design Technology InfrastructureTechn. Sol. Architect

IT Director

S-P

Business Analysis/Concepts

Business ExpertBusiness Manager

C-S-P TransformationConcept: Process, IT,Organization

Bus. Transf. Manager CEO

P-M Detailed Designof Core Processes

Bus. Solution Architect Process Owner

Detailed MappingProcess -> Application

S-P

Process ImplementationProcess Implementation Consultant

Customer PL

C-S-P

SystemManagement ConceptSystem Management Expert

System ManagerTechnology Cons. A-C-S-P

Expert Consulting forTechnical Components

Project Member

Support/OptimizeSystem Mgmt

Expert Cons. for SAP Composites & Repository

Application Consultant Project Member

A-C-S-P

Test conception &support for all test activities Test Management Consultant

Customer PL

A-C-S-P

Integr. DevelopmentIntegr. Development Cons.Custom Development Lead

A-C-S-P

S-P

P-MTransformationConcept IT Strategy

IT Transf. ManagerCIO

Software Blueprintfor Individual Development

Development Architect Cust Develop.Lead

S-PIT Strategy

IT StrategistC-Level

Enterprise ITArchitecture Design

P-M

Plan Build Run

Process LevelEnterprise Level Application/Technology Level

The new service portfolio needs a more specialized set of skills. The strategic development of our consultants follows a set of transformation paths.

The action plan to master the challenges is defined

Enable growth in SME

Expand value for Large Enterprises

Drive early adoption of new solutions

Fosterpersonal growth

Change continuously our fulfillment

Enable and expand the partner ecosystem Grow the ecosystem

Workforce readiness

Employer of choice

Distributed Delivery &optimized operations

A1S Ramp-Up ERP upgrades

Enterprise SOA, PLAN & Customer Process Innovations

IT Operations Custom Development

NPI, key solutions, Ramp-Up (e.g. CRM)

Blended education offerings

Planned versus Actual Strategy

AccumulatedDecisions

PlannedStrategy

ActualStrategy

UnexpectedOpportunities

MissedOpportunities

Weed orFlower?

Good Strategy Execution =Planning + Opportunism

Stability on the “What”, Flexibility on the “How”

Ex

pe

cta

tio

n

NOW

SAP Future

Time

Weeds

Weeds

Flowers

Results

419 % Wachstum in der Topline (2004-2008)

Profitability verdreifacht

Bei konstantem Headcount

Und branchenüberdurchschnittlicher Mitarbeiterzufriedenheit

Probieren !

Mein persönliches Fazit

Die Breite des Studiums öffnet alle Türen

Zu Beginn war es wichtig schnell viele Unternehmen und deren Herausforderungen kennenzulernen – Beratungsunternehmen sind m.A. nach ideal

Was spannendes gefunden? Profi werden

Personalverantwortung übernehmen - Wagen

Persönliche Strategie überprüfen – Job/Familie/Gesundheit

Mein persönliches Fazit

Studium bildet Ideale Plattform um als Change Agent zu arbeiten

The Team is all!

Verantwortung delegieren an die Top Experts

Ergebnisse konsolidieren

Strategie festlegen, revalidieren

Lass Dein Team als Gewinner dastehn!

Dankeschön

Prof. Liese Opportunitätskosten

Prof. Wenk Zerreissprobe plastische /elastische Verformungen + Eisen-Kohlenstoffdiagramm

Prof. Johannes Entity Relationship Model

Klaus Müllner/Edwin Keuchler Englisch/Französisch

Christoph Glatz Post Networking

Prof. Grillo CD/Corp. Identity

Fragen?