SAP’s implementation of Enterprise 2.0 and its functional business support leverage gains.

SAP is an international company based in Germany with offices in 130 countries around the world, and being one the largest supplier of enterprise software. SAP’s software is based on industry best practices and acknowledges the use of Enterprise 2.0 technologies as an integral part of their business model.

“SAP Community Network is SAP’s professional social network, orchestrating connections between SAP customers, partners, employees and experts. These communities play an integral role in the SAP ecosystem. Members use the power of social networking to tap into a broad network of peers to gather advice and knowledge to help solve their business problems.” Communities – Key to the SAP Ecosystem

This blog will identify two of the ten associated value levers that SAP extracts from utilizing Enterprise 2.0 technologies based from the McKinsey Global Institute 2012 report. Below are the ten points in McKinsey’s report detail the value levers that Enterprise 2.0 technology has to offer a business, I have added links to examples of how SAP has embraced these opportunities in Enterprise 2.0 technologies.

  1. Co-create products
  2. Leverage social technologies to forecast and monitor
  3. Use social technologies  to distribute business process
  4. Derive customer insights
  5. Use social technologies for marketing communication / interaction
  6. Generate and foster sales leads
  7. Social technology commence
  8. Provide customer care via social technologies.
  9. Use social technologies to improve intra- or inter-organisational collaboration and communication.
  10. User social technology to match talent to tasks.

Using social technologies to improve collaboration and communications and also the ability to leverage social technologies to forecast and monitor are aspects relevant to SAP’s commitment and recent initiative in embracing social media technologies. These two points are the focal discussion topic of this blog which focuses on the benefits of the emerging web 2.0 technologies.

Use social technologies to improve intra- or inter-organisational collaboration and communication. (Points 9)

SAP provides a system to facilitate organisational collaboration and communication in multiple systems, one of these systems is the SAP Developer Network. This blogasphere allows customers to interact and communicate with the people responsible for developing the systems, it gives the customer an insight into what to expect in new releases and possible future tools but also aids in shaping these technologies.

SAP discussion

Image from the SAP Developer Network

Another system SAP introduced is SAP EcoHub, the EcoHub provides an area to explore what the SAP community of associates, partners and industry experts observations and opinions on possible solutions. SAP EcoHub allows you then to make an informed evaluation and purchase solution suited to your business requirements and needs. All solutions are ranked by star rated system and comment field produced by a community driven marketplace, this allows customers evaluate solutions and channel questions to the appropriate resources within SAP.

Leverage social technologies to forecast and monitor (Points 2)

At SAP they have actually recognized that Enterprise 2.0 technologies will not only place your business in a competitive advantage, they have built a tool to leverage the potential marketing revenue possibilities that can be ascertained through this medium. SAP has introduced a tool called SAP Social Media Analytics .

The recent hype and influx of internet based messages through social media technologies has become a major influencing factor in consumers purchasing actions. (Mangolds, Faulds 2009). SAP acknowledges this and through a cloud based solution, customers can undertake their own marketing research on what the company’s brands, products and even the competitors brands are trending through social media chatter. To capitalize on what products are desired, there customer’s geographical location and their associated family and friend network with similar aspirations are invaluable.


About jcoglan2013

I am currently completing my master in IT at QUT, I am the ICT/CAD Manager for the department of Public Works Queensland Government.
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3 Responses to SAP’s implementation of Enterprise 2.0 and its functional business support leverage gains.

  1. Sarun Y. says:

    Hi John,
    I think that you have made a great research post for SAP as well as applying it with the context of your chosen ‘value’ levers. Personally, I have a chance to experience the SAP software once while taking the ‘Enterprise System’ class. One of the lessons that I have learnt from the following class is the importance of the communication. Customers need to be involved with the developers’ team before, during and after the software implementation of their organisations. From this, I think that is another main reason why social technologies can be used to present the ‘value’ to SAP, and how the organisation have come up with the collaboration and monitoring tools as you have mentioned in this blog post (SAP Developer Network, SAP EcoHub and SAP Social Media Analytics) 🙂 .

    Nice informative post, John

    • jcoglan2013 says:

      Thanks again Sarun, I was also fascinated and impressed by the way inwhich SAP offers their customers the ability to tap into this wealth of knowledge and communication happening daily of Social Media site.

      (PS I think I am in the same class) 🙂

  2. Hussain, says:

    Hi Jcoglan,

    It is very interesting how SAP embraced enterprise 2.0 developing a system that they can call their own to enable collaboration between and among the SAP internal and external communities. As a supplier of enterprise software, it is wise how the company utilised social technology to their profitable advantage. By developing a focused community/group sharing the same interest in technology and SAP software, the company creates a larger organisation that helps in the product development process. It is the cheapest approach to product development and advertising. I personally like the idea how they have created a growing community that shares knowledge and ideas related to software that they develop and continues to improve. The social network that brings together customers, partners, employees and even experts around the world is beyond impressive, I must say. So, Facebook is not the only key to profitable growth. In your blog entry, I realise the importance of a focused group/community. I only wonder, how long it takes to build up such a proactive social community?

    Feel free to visit my blog and leave a comment:

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