Most think of a digital transformation as the province of the IT department, or in a small business, the person in charge of the computers. But as presented at last week’s SAP Business One Innovation Summit, held at the Rosen Shingle Creek Resort and Conference Center in Orlando, FL, the digital transformation needs to touch every facet of the business.
As Jonathan Becher, Chief Digital Officer at SAP, said in his keynote address, digital is attached to everything in the business, from the business model to the customer experience. Most companies can’t compete on price, so they add services. Those that truly are transforming change their business model; Becher cited the music industry’s shift from an album-centric sales model to a song-centric model, and lately, with the advent of services like Spotify, a subscription-based model. Relevant to the audience of SAP implementation partners, who are seeing SAP offer its flagship SMB product, Business One, on a subscription basis, the attendees were then challenged to rethink how they create value.
Since many of SAP’s implementation partners, or value-added resellers (VARs), have previously bundled sales of the German company’s software with services and support, the first part of the equation is nothing new. But those sales were heftier, based on the purchase of the software. With SAP now leading a charge to “consumerize” enterprise software, charging a subscription fee instead of a licensing fee, these same VARs are being challenged to add even more value to what they do to meet revenue goals.
The rest of the SAP Business One Innovation Summit included a host of workshops for these partners to conduct their own digital transformations, everything from a product roadmap for Business One to sessions on adding value with partner software, developing customizations, and sales and marketing. For VARs, it was an opportunity to get an inside look at what they could do to boost their revenue and move toward SAP’s vision for the Business One software product.