SAP Writes A Program For Innovation
Ovum, March 2007, Pages: 11
SAP’s growth strategy has three legs: to drive adoption of service-oriented architecture (SOA) and of NetWeaver, its SOA-based, business process platform; broaden its enterprise focus to include the mid-market; and build its industry ecosystem through a unique approach to partnering and software development that it calls ‘co-innovation’. Co-innovation aims to combine SAP’s expertise with that of key partners and customers to define optimal business processes and implement them in best-of-breed, SOA-compliant software. In SAP’s vision, this approach will deliver consistent value to all three parties, in a systematic, repeatable fashion that also fosters long-term loyalty. Co-innovation is new and complex, and its benefits may prove difficult to quantify. Nor will it, by itself, ensure SAP’s overall success. However, early participants appear enthusiastic and, if it continues to gather steam, co-innovation stands to become a powerful market differentiator for SAP.
Key messages
SAP is building an innovative approach to IT innovation
Three new programs illustrate the co-innovation process
Industry Value Networks
Enterprise Services Community
Business Process Experts Community
Embedding co-innovation throughout SAP boosts likelihood of success
Still new, co-innovation faces multiple challenges
Promising start towards a strong differentiator
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