Best-of-Breed instead of SAP?

The term digitization is not uniquely defined. It means not only the "digitization" of processes within the company, but also the digital inclusion of customers, suppliers, and possibly entirely new target groups.

What does that mean in concrete terms?

In the 1st stage of digitization, the processes in the company are digitally "connected". Although there are software manufacturers such as SAP that cover the entire process chains, digital "gaps" still exist.

The smaller the companies, the lower the degree of digitization usually is. Between the ERP, MES and PLM solutions, there are still plenty of digital "gaps" that need to be closed.

For this reason, interface standardizations will be launched in the next few years so that the connection of the "IT worlds" can also be implemented.

The use of smartphones, tablets and apps still belongs to the 1st stage of digitization and it would be wrong to postulate it as the already successfully completed process into digitization.

The 1st step of digitization is still understood and can be comprehended by most entrepreneurs - the 2nd step, however, less so, although it will trigger disruptive changes.

The 2nd stage has been partially implemented in parallel and there are some examples that give us an idea of the revolutionary changes that are being initiated.

Digitization generates data that is not only of interest to customers, but also to new target groups. This means that a new network of relationships and information is being "woven" between raw material suppliers, subcontractors, producers, service providers, trade, logistics, customers and new customers, enabling new types of services/business models and value chains.

What impact does this development have on the IT industry?

Consultants, product managers, product owners who have the foresight to design new business models are needed. Companies need their own IT again to drive digitization.

Companies need an agile culture and agile consultants to design such concepts, not just agile software development. Best-of-breed solutions - once pronounced dead - will experience a revival because companies need to take advantage of their industry know-how to survive in the market.

SAP users will increasingly use best-of-breed (non-SAP) solutions to differentiate themselves from standard solutions. Interface standards will accelerate digitization and become both an opportunity and a risk for solution providers.