Analyzing SAP’s FKOM and the Idea of “Intelligent Enterprise”
Returning from SAP Field Kick-off Meeting (FKOM) Barcelona I would like to share some insights:
- Between January 15 and 17, SAP kicked off 2019 at their regional EMEA/MEE FKOM event. Similar events were performed in other regions.
- While there were no major strategy changes announced, a couple of things got re-emphasized:
- Growth area for SAP will be Cloud, while On-Premise is being expected as stable.
- SAP sees major opportunities for their new CRM which is C/4HANA.
- Also, SAP is further promoting the transition from ERP to S/4HANA.
- SAP introduced a new slogan “Experience Matters” which must be seen in conjunction with their acquisition of Qualtrics (see https://www.qualtrics.com/). The idea is to bring together business data from SAP with experience data from Qualtrics in the categories of Customer, Employee, Brand, and Product. This refers to the business’ ability adapting to change in the market, for example measured by the AQ (Adaptability Quotient).
- All this enhances the paradigm of the “Intelligent Enterprise“, using data for driving outcomes in end-to-end mega-processes. This must necessary lead to an even better integration of the SAP products in the areas of Customer Experience (C/4HANA), Manufacturing & Supply Chain (IBP, ME, MII, PPM, AIN, ASPM,…), Digital Core (S/4HANA), People Engagement (SuccessFactors), and Network & Spend Management (Ariba, Concur). For more details on the solutions you may have a look into the SAP Solution Explorer (https://solutionexplorer.sap.com/solexp/ui/) or the published SAP Roadmaps (https://www.sap.com/roadmaps). Shaping your own journey into the new portfolio might start with the Transformation Navigator (https://support.sap.com/en/tools/upgrade-transformation-tools/transformation-navigator.html), a tool you can use to map out your existing landscape and see SAP’s recommendations for go-to solutions.
- Following the idea of an “Intelligent Enterprise”, SAP has revamped their EAM offering under the headline of “Intelligent Asset Management“. This comprises of two major parts:
- S/4HANA Asset Management for the parts of EAM in the Digital Core. This mainly comes back to what most people know under the term PM (Plant Maintenance), but with a new Fiori and WebDynpro harmonized user experience, completely new analytics, and quite some enhancements and continuous improvement. Additionally, components for planning and scheduling (e.g. MRS), work clearance management (WCM), or environment, health, and safety (EHS) reside here.
- SAP Cloud Platform based applications that complement the Digital Core for flexibly realizing on innovation challenges. Asset Intelligence Network (AIN) for exchanging asset master and condition data between manufacturer, service provider, and operator. Asset Strategy and Performance Management (ASPM) for determining or improving on maintenance strategies using a variety of methodologies (like Asset Criticality Analysis, RCM, FMEA, Root-Cause Analysis). Predictive Maintenance and Service (PdMS) for monitoring asset health data and initiate maintenance events when needed. Predictive Engineering Insights (PEI) for modeling physical structures and simulate stresses and strains.
- Asset Central acts as the layer for common functionality of the EAM cloud applications as well as the information broker between S/4HANA and Cloud Platform. In this regard, it can also be seen as SAP’s new asset cloud registry for both master data and real-world information.
- In essence, Intelligent Asset Management follows the idea on an Intelligent Enterprise by establishing data-driven asset management processes that are based on the Digital Twin, a virtual representation of the physical asset with all relevant up-to-date information, accessible in the cloud.
- In its main pieces, the concept also works in combination with SAP ERP, hence there is no reason to postpone innovation, just because an S/4HANA transition is yet to come. Intelligent Asset Management allows for building the big picture, then consuming the pieces step-by-step.