Presentation held at the Technology Services World Best Practice 2014 conference in Santa Clara, California.
We launch from J.B. Wood’s and Thomas Lah’s celebrated new Business-for-Business (B4B) technology framework to explore ways to revamp your Professional Services business toward outcome-based operating models. Using SAP Services as a case-study, we will explain how you can start your journey by leveraging existing B4B building blocks already in your business. You will discover how to identify outcome-based services for your portfolio, how to scale them with a simplified go-to-market and, finally what new new delivery platforms like assemble-to-order can do to your efficiency. These are just a few examples how you can start your journey to B4B - and there are many ways to get there.
Apidays New York 2024 - APIs in 2030: The Risk of Technological Sleepwalk by ...
Nicolas Schobinger | B4B – How to jump-start your journey with your Professional Services Business
1. B4B
How to jump-start your journey with your
Professional Services Business
Nicolas Schobinger | SAP AG
05.05.2014
2. @nschobinger
Safe Harbor Statement / Disclaimer
Safe Harbor Statement
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S.
Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,”
“intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to
identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking
statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to
differ materially from expectations. The factors that could affect SAP’s future financial results are discussed more fully in
SAP’s filings with the U.S. Securities and Exchange Commission (“SEC”), including SAP’s most recent Annual Report on
Form 20-F filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of their dates.
Disclaimer
SAP has no obligation to pursue any course of business outlined in this presentation or to develop or release any functionality
mentioned in this presentation. This presentation and SAP's strategy and possible future developments are subject to change
and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any
kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular
purpose, or non-infringement. SAP assumes no responsibility for errors or omissions in this document, except if such
damages were caused by SAP intentionally or grossly negligent.
2
4. @nschobinger
SAP Services – At a Glance
4 Lines of Business: Consulting, Education, Custom Development, Premium Support
4’500+
Million USD revenues
15,000
Consultants
15,000
Engagements annually
1,000,000
Days delivered annually
60+
Countries with local presence
500,000
Customers and partners
resources trained annually
4
5. @nschobinger
Many ways to start
Source: Pictures taken from A. Lange & Söhne, Glashütte, 2014 .
5
Complication
B4B
Caliber
eg Line of Service
Tourbillon
eg Capability
7. @nschobinger
Portfolio
Defining a B4B Portfolio
What did we do?
• Defined an OBS framework (Specs)
– Codifying the 5 criteria
– Requirements, Checklist
– Templates
– Examples
• ∆ existing Services to meet OBS specs
• ∆ Service creation process
• Retiring non-OBS from Catalogue
7
Outcome-Based
ready | potential
Existing Portfolio
• Propensity
• Business Value
• Differentiation
• Pricing
• Marketability
8. @nschobinger
Outcome-Based Services – Examples
8
Portfolio
Before
Upgrade
Assessment
Technical
Upgrade
Functional
Upgrade
$
ONE Customer
$ $
After
Upgrade Bundle
• Out of the Box
• Minimal Down Time
• Fixed Price
• Fixed Scope
ONE Customer
$
Use-case IP
9. @nschobinger
B4B & The Portfolio – Learnings
Lessons Learned
• Framework: clear, pragmatic
• Portfolio rework: on promising
prospects instead of lemons
• Differentiation: strongest predictor
for success
• Sales force benefits: simplification,
differentiation
• Key: embedding of Sales tools (e.g.
Sales Navigator)
9
Portfolio
Experiences Benefit
PortfolioCoverage
0%
5%
10%
15%
20%
Before After
8x
1:6
Identify
1:50
10. @nschobinger
Selling the B4B Portfolio
Volumization, Outcomes, Execution
10
Build Scalability
with Tools
• Context aware
• Push/Smart vs Pull
• Demand shaping on
the spot
• Collateralized
• Execution-minded
• Mobil, yet back-end
connected
Sightings
• Portfolio gets
broader and
broader
• Land & Expand
• Smaller deal-sizes
• Volumization in
the GTM
• Outcomes
Go-to-Market
Still a Reality
15. @nschobinger
Delivery
B4B & The Delivery – Learnings
15
Lessons Learned
• Outcome based assets as
prerequisite
• New Framework
- Design-based vs Assembly
- Solutioning & Assembly is now key
- WBS, Production-Model, Location
• Cloud provisioning
• Automation is front and center
Experiences Benefit
0%
20%
40%
60%
80%
100%
Before After
-40%
-50%
-30%
Prep
Blueprint
Realize
Test
Go-Live
Test
Run
Start
Deploy
gone
DeliveryCycleTime
16. @nschobinger
DeliveryGo-to-MarketPortfolio
B4B & Extreme Efficiency
PortfolioCoverage
0%
5%
10%
15%
20%
Before After
8x
1:6
Identify
1:50 0%
20%
40%
60%
80%
100%
Before After
-30%
gone
Identify
Shape
SME &
Estimate
SME &
Estimate
Identify
& Shape
SalesCycleTime
0%
20%
40%
60%
80%
100%
Before After
-40%
-50%
-30%
Prep
Blueprint
Realize
Test
Go-Live
Test
Run
Start
Deploy
gone
DeliveryCycleTime
16
17. @nschobinger
Many ways to start
Source: Pictures taken from A. Lange & Söhne, Glashütte, 2014 .
17
B4B Line of Business Capability
Complication Caliber Tourbillon