The desire for harmony & standardization
In your view, which SAP expertise is most in demand among existing customers?
Bernd Martin: On the one hand, for years there has been a persistently strong desire for more standardization and harmonization with the aim of
Increasing efficiency. In addition, new topics such as cloud are on the rise. On the other hand, budgets have not increased for most users. This results in an increasing demand for expertise at manageable costs. SAP users are increasingly aware that this balancing act can only be solved with offshore resources. However, they demand a clear focus on the requirements of the German market. Above all, they expect clearly defined projects that are approached step by step. As a rule, customers are not looking for a big project with a long-term commitment, but for concrete project implementation.
In which SAP offerings does Larsen & Toubro Infotech have extensive expertise?
Martin: With 3500 SAP experts, we cover the complete spectrum of requirements, from transformation to innovation and service to execution. We are a subsidiary of the Larsen & Toubro Group, which is the largest SAP user in India. As a result, our expertise, for example in the oil, gas, engineering and construction industries and other segments, is well above the market average, because we are not only providers and consultants, but also users.
Why has Larsen & Toubro Infotech come to Germany now?
Martin: The economy is increasingly globalized. New challenges associated with this promise a great need for expertise like that of Larsen & Toubro Infotech. There is a lack - not only, but also - of competent IT experts in Germany who are also affordable. Thanks to our strong presence in India, we can offer these experts at a reasonable price and in a flexible manner.
What relevance will S/4 and Hana have for existing SAP customers by 2020?
Martin: SAP users are interested in S/4 and Hana for a wide variety of reasons. Often, it's not about individual performance features, but about the desire for standardization and harmonization, as well as a kind of laying of the foundation stone for the future. Occasionally, however, quite mundane reasons such as the desired optimization of maintenance contracts also play a role. We seldom see any great urgency, especially since every changeover also entails risks. For this very reason, we often recommend a step-by-step master plan, in which the measures with the greatest benefit and the lowest risk are implemented first, before all the other steps are taken successively.
What Hana expertise can you find at Larsen & Toubro Infotech?
Martin: Our Hana expertise is very comprehensive. Our spectrum ranges from Hana adaptation, upgrades and integration to Enterprise Hana Platform Services with certified Industry Solutions. More than 300 consultants work in our own "Analytics Hana" department alone.
From Larsen & Toubro Infotech's perspective, to what extent is the German-speaking SAP community different from other SAP markets?
Martin: The German-speaking community is more demanding and risk-averse than the user community in most other countries. Users here demand complete clarity about goals, risks and costs even before the project begins. As a result, issues need to be better understood and more precisely specified. Milestones, deliverables and benchmarks need to be defined in detail. In addition, the majority of German-speaking users prefer projects to be approached in smaller and more manageable steps. The proof of concept follows the convincing, then the pilot, and only when everything works is the project really tackled. For us as a provider, this means that we have to do more convincing and offer control instances.
Does Larsen & Toubro Infotech also sell SAP licenses - and if so, how do you advise existing SAP customers on NetWeaver Foundation for Third Party?
Martin: We don't sell software licenses and that's precisely why we are accepted as a neutral consultant. SAP was relatively late to the market with NetWeaver and many users were already working with another vendor's solution at that time. Against this background, we do not necessarily recommend a change. Rather, a case-by-case decision is appropriate here. We only advise a change if there is a concrete benefit for the customer. The fact that we do not earn our money by selling software licenses helps us and our customers to strictly maintain this neutrality.
How do you assess the maturity level, roadmap and upcoming tasks regarding SAP SolMan?
SAP has finally taken the right path here. SolMan 7.2 significantly increases user-friendliness and standardization. Since we have been working with SolMan 7.2 internally since May 2016 and have been able to gain experience in several POCs and installations, we highly recommend the switch to 7.2 to our customers.
What opportunities do you give HEC and HCP in Europe?
Martin: This is a particularly difficult question, as there are a number of unclear factors at play here. Of course, cloud scenarios make sense and the cloud will become more prevalent in more places over time. However, the risks cannot be overlooked. For example, there is no offer on the part of SAP for a "way back" regarding licenses at HEC. In both cases, the user loses quite a bit of autonomy. In the longer term, however, there can be no doubt that Hana in the cloud and Hana as an integrating cloud platform also have good chances in Europe.
Where do you see your SAP focus for 2017 and, in general, the biggest challenges in and for the German-speaking SAP community?
Martin: We have specified our offering to meet the very specific requirements of the German-speaking community. This means that we offer concrete solutions for specific tasks in a clearly defined project with a high degree of control by the customer. Examples include our "BW to Hana" project in ten stages and a dedicated update from SolMan 7.1 to 7.2. For this, no user wants or needs to enter into a contractual commitment with a supplier lasting several years, including the necessary bureaucracy. We handle both tasks in clearly defined projects.
Thank you for the interview.
