Sei sulla pagina 1di 22
Competing Competing against against SAP SAP in in Small Small - - Midsize Midsize Deals
Competing Competing against against SAP SAP in in Small Small - - Midsize Midsize Deals

CompetingCompeting againstagainst SAPSAP inin SmallSmall--MidsizeMidsize DealsDeals

BuffBuff BrewsterBrewster OracleOracle CompetitiveCompetitive IntelligenceIntelligence

Winning against ORACLE CONFIDENTIAL: Oracle Competitive Intelligence This presentation is for training purpo ses only

Winning against

Winning against ORACLE CONFIDENTIAL: Oracle Competitive Intelligence This presentation is for training purpo ses only to

ORACLE CONFIDENTIAL:

Oracle Competitive Intelligence

This presentation is for training purposes only to improve the knowledge of Oracle and its partners’ sales and solution consulting teams.

UNDER NO CIRCUMSTANCES CAN YOU SHARE THIS WITH CUSTOMERS. THANK YOU.

ORACLE CONFIDENTIAL. For authorized [partner][ use only. Do not distribute to third parties. 2008 Oracle. All rights reserved. This document is provided for information purposes only, and the contents hereof are subject to change without notice. This document is not warranted to be error-free, nor is it subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose. We specifically disclaim any liability with respect to this document, and no contractual obligations are formed either directly or indirectly by this document.

are formed either directly or indirectly by this document. 2 Oracle Confidential: For use by Oracle

2

Oracle Confidential: For use by Oracle employees and authorized business application partners only. Do not distribute to third parties.

Winning against Oracle Competitive Intelligence At year-end 2006, SAP announced aggressive growth goals: 100,000 total

Winning against

Winning against Oracle Competitive Intelligence At year-end 2006, SAP announced aggressive growth goals: 100,000 total

Oracle Competitive Intelligence

At year-end 2006, SAP announced aggressive growth goals:

100,000 total customers by year-end 2010 Including 86,000 Small-to-midsize customers

SAP must win consistently to reach this goal. What are the barriers?

consistently to reach this goal. What are the barriers? 3 Oracle Confidential: For use by Oracle

3

Oracle Confidential: For use by Oracle employees and authorized business application partners only. Do not distribute to third parties.

Winning against Oracle Competitive Intelligence ‘s Overlapping SMB portfolio > $2.5b $1b - $2.5b $500m

Winning against

Winning against Oracle Competitive Intelligence ‘s Overlapping SMB portfolio > $2.5b $1b - $2.5b $500m -

Oracle Competitive Intelligence

‘s Overlapping SMB portfolio

> $2.5b $1b - $2.5b $500m - $1b
> $2.5b
$1b - $2.5b
$500m - $1b

$200 - $500m

All-in-One Larger mid-size enterprises $200-700 Million ($1-1.5 B) 10,223 customers

Hosted Business-byDesign

($1-1.5 B) 10,223 customers Hosted Business-byDesign Mid-market: $250-$400 million 50-100 Users In Beta w/20
($1-1.5 B) 10,223 customers Hosted Business-byDesign Mid-market: $250-$400 million 50-100 Users In Beta w/20
($1-1.5 B) 10,223 customers Hosted Business-byDesign Mid-market: $250-$400 million 50-100 Users In Beta w/20

Mid-market:

$250-$400 million 50-100 Users In Beta w/20 customers

Business One Small enterprises:

$10 - $200

SAP claims 25,000 SMBs out of 41,000 total customers

$10-20 million 50-80 users 14,667 customers

Source: SAP Calendar Q2 2007 Earnings Release

customers Source: SAP Calendar Q2 2007 Earnings Release 4 Oracle Confidential: For use by Oracle employees

4

Oracle Confidential: For use by Oracle employees and authorized business application partners only. Do not distribute to third parties.

Winning against Oracle Competitive Intelligence Lots of hype … not enough sales SAP’s Top challenges:

Winning against

Oracle Competitive Intelligence

Winning against Oracle Competitive Intelligence Lots of hype … not enough sales SAP’s Top challenges: 1.

Lots of hype … not enough sales

SAP’s Top challenges:

1. Add >4,300 new SMBs/ quarter

(17,200/year) to reach 86,000 SMBs by YE

2010

Current SMB run rate is only 1,360/Q

2. Three separate products, disparate toolsets = no economies of scale

3. What gets retired & when? If B-B-D is next gen, when does SAP retire SAP ERP 6.0 (mySAP)? SAP is not committing yet.

SAP retire SAP ERP 6.0 (mySAP)? SAP is not committing yet. 5 Oracle Confidential: For use

5

Oracle Confidential: For use by Oracle employees and authorized business application partners only. Do not distribute to third parties.

Winning against Oracle Competitive Intelligence What SAP and the trade press tell us about SAP

Winning against

Oracle Competitive Intelligence

Winning against Oracle Competitive Intelligence What SAP and the trade press tell us about SAP Business

What SAP and the trade press tell us about SAP Business byDesign

SAP’s next-generation decomposed solution/ SOA design

Bundles ERP, CRM, SCM using one data model - Virtual single instance GA in Q1 2008 First available as a hosted solution & SAP Germany is the initial hosting data center. It will open hosting to partners later Under the hood it runs on legacy ABAP programming language - proprietary ABAP wrappered by SAP Enterprise SOA. 2009 release of on-premise option expected

programming language - proprietary ABAP wrappered by SAP Enterprise SOA. 2009 release of on-premise option expected
programming language - proprietary ABAP wrappered by SAP Enterprise SOA. 2009 release of on-premise option expected
programming language - proprietary ABAP wrappered by SAP Enterprise SOA. 2009 release of on-premise option expected
programming language - proprietary ABAP wrappered by SAP Enterprise SOA. 2009 release of on-premise option expected

Performance issues compel early hosting:

= A controlled test environment to address

scalability, performance Only drove 10 users in May 2007

Requires sizeable $$$ blade server system

Partners will NOT get source code or provide mods. Only SAP will automate updates for bug-fixes and ServicePacks.

Basic System Price: $149 user/ month

Minimum 25 users for 12 months

Basic 100-user system price = $14,900/month or $178,800/ year

Are you hearing about this offering in current deals?

Are you hearing about this offering in current deals? 6 Oracle Confidential: For use by Oracle

6

Oracle Confidential: For use by Oracle employees and authorized business application partners only. Do not distribute to third parties.

Winning against Oracle Competitive Intelligence Makes lemons into lemonade with very savvy ‘BBD’ messages

Winning against

Oracle Competitive Intelligence

Winning against Oracle Competitive Intelligence Makes lemons into lemonade with very savvy ‘BBD’ messages

Makes lemons into lemonade with very savvy ‘BBD’ messages

‘Try-before-you-buy’: Low risk hosted implementation available by

monthly subscription Fast ROI, low TCO: Hosting requires no massive hardware & services

investment The first SOA-based product to market”

36 end-to-end business processes/ services

SAP makes mods – partners do not – so Quality Control of apps is managed centrally by SAP

Great fit for 100-users. Designed for 25-500 users: 100 is sweet spot. (500 users = performance issues)

users: 100 is sweet spot. (500 users = performance issues) 7 Oracle Confidential: For use by

7

Oracle Confidential: For use by Oracle employees and authorized business application partners only. Do not distribute to third parties.

Winning against Oracle Competitive Intelligence But both SAP and Analysts are skeptical 26 June 2007

Winning against

Oracle Competitive Intelligence

Winning against Oracle Competitive Intelligence But both SAP and Analysts are skeptical 26 June 2007 Quotes

But both SAP and Analysts are skeptical

Intelligence But both SAP and Analysts are skeptical 26 June 2007 Quotes Hasso Plattner: “SAP will

26 June 2007

Quotes Hasso Plattner:

“SAP will be forced to cannibalize its own customers by offering new software that is delivered over the Web as it adapts to a world irrevocably changed by Goggle. … SAP's on- demand A1S (Business byDesign) software, slated for launch early next year, would be one of SAP's best-ever products, but would compete with its current way of doing business. ‘This model will compete with our current model, and 99% of our installations are on site.’ … “Business byDesign was being developed differently, with testers involved at a much earlier stage. This is now on its seventh user- interface version, and thanks to our colleagues in India, there will probably an eighth, a ninth and a tenth version.” Plattner said.

an eighth, a ninth and a tenth version.” Plattner said. "You're talking about a new technology,

"You're talking about a new technology, a new channel, a new business model and entirely new market. Any one of those things could easily get screwed up. SAP has to get all four exactly right to drive revenue.“

Dan Sholler, Gartner’s Lead SAP Analyst

8

Oracle Confidential: For use by Oracle employees and authorized business application partners only. Do not distribute to third parties.

Winning against Oracle Competitive Intelligence SAP All-In-One: Product Facts Partner All-in-One prepackaged ‘bill of

Winning against

Oracle Competitive Intelligence

SAP

All-In-One: Product Facts

Partner All-in-One prepackaged ‘bill of materials’ includes:

Core SAP ERP suite

+ Industry functions:

extensions, tailored forms & reports

+ Business process templates (from former up-market industry implementations) Built from templates in SAP’s Building Block Library

+ Fixed services scope

1998: SAP lost frequently in mid-market to products like EBS and JDE E1 So it adapted its complex flagship R/3 up- market product to mid-market via a separate distribution & customization model & channel:

Till end 2006, All-in-One solutions based on R/3 4.6 and mySAP 2004 ERP 3-tier client-server suites Now migrating to latest SAP version: ~ 25% of All-in-One solutions are based on current SAP ERP 6.0 Single instance Includes some CRM

Scalable, supports multi-plant 660 industry sub-sector solutions available in over 50 countries – created by partners But few solutions are in multiple languages

Watch for All-in-One above & below defined $200-$1B market

for All-in-One above & below defined $200-$1B market 11 Oracle Confidential: For use by Oracle employees

11

Oracle Confidential: For use by Oracle employees and authorized business application partners only. Do not distribute to third parties.

Winning against Oracle Competitive Intelligence All-In-One: Clever messaging vs. Reality Templates drive ROI Their

Winning against

Oracle Competitive Intelligence

Winning against Oracle Competitive Intelligence All-In-One: Clever messaging vs. Reality Templates drive ROI Their

All-In-One: Clever messaging vs. Reality

Intelligence All-In-One: Clever messaging vs. Reality Templates drive ROI Their Pitch: “The power to drive

Templates drive ROI Their Pitch:

“The power to drive value & to increase revenue for SMB enterprises” “Pre-configured solution sets, pre- packaged industry versions “ “Leverages over 30 years of best practices expertise – enhanced for SMB” “Cost-effective turnkey implementation” often 4-6 months (=Phase 1) Affordable, powerful, and easy-to- use way to begin enjoying the benefits of SAP’s enterprise capability”

BUT do SAP ‘Best Practice’ Templates fit? Pre-configured systems masquerade as business processes of “Best-Run-Business”. Or are they a strait-jacket to which customers must conform?!

12

Oracle Confidential: For use by Oracle employees and authorized business application partners only. Do not distribute to third parties.

Winning against Oracle Competitive Intelligence SAP All-In-One: Pitch vs. Reality ~ 1,046 VAR & ISV

Winning against

Oracle Competitive Intelligence

SAP

All-In-One: Pitch vs. Reality

~ 1,046 VAR & ISV Partner locations and practices

Major All-in-One Partners AnswerThink IBM IDS Scheer/Aris iTelligence Steeb

+ Many smaller regional partners (VARs, resellers, implementers)

Partner support comes from mixed sources

VAR Partner = first-line of defense: All questions and ticket requests go thru SAP All-in-One VAR partner

Response delayed when partner lacks expertise VAR Partners responsible for the software add- on solution, extensions, specialized analytics -- but they may or may NOT be the implementation partner! SAP direct - only responsible for core SAP product. SAP SME Solution Centers - only responsible for the Building-Blocks and country versions Imagine the possibilities. What a mess. Welcome to the SAP Support nightmare in SMB…

Who is accountable?

13

Oracle Confidential: For use by Oracle employees and authorized business application partners only. Do not distribute to third parties.

Winning against Oracle Competitive Intelligence How SAP & its All-in-One partners win… Hybrid SAP &

Winning against

Oracle Competitive Intelligence

Winning against Oracle Competitive Intelligence How SAP & its All-in-One partners win… Hybrid SAP & partner

How SAP & its All-in-One partners win…

Hybrid SAP & partner sales teams: watch for SAP executives!

All-in-One winning sales tactics C-level connection early Many References and customer lists early!

Robust, complex functionality -- but references convince customer without seeing demo

No matter that refs. are on old version

ROI & Dependability: Fixed scope, fixed price implementations

Two-phased deal:

1.

Competitive pricing, templated processes get foot in door & close business

2.

More expensive tailoring services later in

Phase 2 SAP’s partners partner via tight coordination

Deposition Oracle

Our big challenges: Tell it early or they will tell it for you !! 1. SAP misinformation re. future of products, updates Fusion & Apps Unlimited

2. “EBS and JDE E1 can’t support centralized control and industry best practices”

3. Safe Passage initiative

… & We don’t consistently prepare in advance

… & We don’t consistently prepare in advance 14 Oracle Confidential: For use by Oracle employees

14

Oracle Confidential: For use by Oracle employees and authorized business application partners only. Do not distribute to third parties.

Winning against Oracle Competitive Intelligence When EBS and JDE E1 Win Why do SAP’s All-in-One

Winning against

Oracle Competitive Intelligence

Winning against Oracle Competitive Intelligence When EBS and JDE E1 Win Why do SAP’s All-in-One partners

When EBS and JDE E1 Win Why do SAP’s All-in-One partners lose?

We outsell them on:

In depth knowledge of the business; Insight analysis provides us a credible business case Advanced preparation: references and demo Even ‘Negative’ references - prove Oracle skills at problem solving Front line support direct from Oracle minimizes risk Functional parity, but our focused demo showed we understood their problems better

SAP’s global partner lost on:

Less knowledge of the business – a less credible business case Less prepared in demo – did not understand or address their problems as well Lack of SAP front-line for support

15

Oracle Confidential: For use by Oracle employees and authorized business application partners only. Do not distribute to third parties.

Winning against Oracle Competitive Intelligence How we win against 6.0-based All-in-One Partners 1. Execute

Winning against

Oracle Competitive Intelligence

Winning against Oracle Competitive Intelligence How we win against 6.0-based All-in-One Partners 1. Execute

How we win against 6.0-based All-in-One Partners

1.

Execute industry-based solution sell – early references

2.

Suggest prospect scrutinize A-One partner, version, reference site version. R/3 or SAP ERP 6.0? Expect some bait-&-switch between versions – will they get what they saw in reference visit?

3.

Pitch Accelerators for preconfigured implementations and Accelerate ‘prepackaged’ partner solutions where available.

4.

Pitch fully integrated CRM, superior analytics, superior integration (based on open standards). Most mySAP ERP 2005 functional advantages are not new to Oracle !

5.

Plan in advance to prepare easy-to-understand demos with PC-like user interface and role-based access.

6.

Attack fixed-price software license and services that depend on conforming to templates: Do they fit the client’s business? How easy and resource-intensive to change? Partners depend on Phase 2 and 3 services to make money!

16

Oracle Confidential: For use by Oracle employees and authorized business application partners only. Do not distribute to third parties.

Winning against Oracle Competitive Intelligence SAP Business One: Product Facts A Small Enterprise System for

Winning against

Oracle Competitive Intelligence

SAP
SAP

Business One: Product Facts

A Small Enterprise System for up to 80 users

Separate from all other SAP products Acquired, Windows platform code- set based on SQL server

Separate from all other SAP products Acquired, Windows platform code- set based on SQL server

Target markets:

platform code- set based on SQL server Target markets: Wholesale distribution Discrete manufacturing Retail (web

Wholesale distribution

Discrete manufacturing

Retail (web storefront, inventory) Retail (web storefront, inventory)

Professional services Professional services

Chiefly sold in one-off deals, or as standalone divisional solution

Each location installs separate instance Rocky attempts to install it as a connected divisional solution (InterSport) Large EMEA & multi-national corporations already running SAP at HQ install Bus-One in subsidiary locations

Watch for Business One partners to grow in US by targeting SAP’s small subsidiary locations. This is happening internationally now.

locations. This is happening internationally now. 17 Oracle Confidential: For use by Oracle employees and

17

Oracle Confidential: For use by Oracle employees and authorized business application partners only. Do not distribute to third parties.

Winning against Oracle Competitive Intelligence SAP Core Business One Footprint Core product integrates Accounting,

Winning against

Oracle Competitive Intelligence

SAP
SAP

Core Business One Footprint

Core product integrates

Accounting, Financials,

Reporting (MS Excel) HR employee data mgmt

CRM: SFA, sales partner

management, Customer Service Mgmt

= former Praxis CRM MS Outlook access

Purchasing & Inventory

Incl. Alerts & Workflow

eCommerce (web store- front)

‘Lite’ functionality – Needs 3 rd party integrations for robust functionality MRP II not full ERP FourthShift Edition for B1

SAP Business One v. 2007 Solution Map

Edition for B1 SAP Business One v. 2007 Solution Map Source: SAP Small Business website -

Source: SAP Small Business website - August 2007

Map Source: SAP Small Business website - August 2007 18 Oracle Confidential: For use by Oracle

18

Oracle Confidential: For use by Oracle employees and authorized business application partners only. Do not distribute to third parties.

Winning against SAP Oracle Competitive Intelligence Business One Global Traction 14,667 customer sites (+38% y:y)

Winning against

SAP

Oracle Competitive Intelligence

Business One Global Traction

14,667 customer sites (+38% y:y)

935 – 1,316 VAR, ISV, and implementer locations Initial availability in EMEA and US 2006 added South America and APAC Partners provide 40 country versions – aided by SAP SME Centers

in EMEA and US 2006 added South America and APAC Partners provide 40 country versions –
in EMEA and US 2006 added South America and APAC Partners provide 40 country versions –
in EMEA and US 2006 added South America and APAC Partners provide 40 country versions –

Partners sell vanilla Business One

Unlike All-in-One industry VAR model >350 horizontal and vertical solutions FourthShift is dominant partner in Manufacturing space: delivers B-One + Fourth Shift edition for B-One = extra cost Early 2004 partnership with AmEx for small businesses disbanded

B-One + Fourth Shift edition for B-One = extra cost Early 2004 partnership with AmEx for
B-One + Fourth Shift edition for B-One = extra cost Early 2004 partnership with AmEx for
B-One + Fourth Shift edition for B-One = extra cost Early 2004 partnership with AmEx for

A licensed product

Business One version 2007-A to release in Q3 2007; now in testing

‘B1S’ SaaS version announced

SAP India is adapting Business One for SaaS delivery in a pilot project for customers in India – TBA July 2007

a pilot project for customers in India – TBA July 2007 19 Oracle Confidential: For use

19

Oracle Confidential: For use by Oracle employees and authorized business application partners only. Do not distribute to third parties.

Winning against Oracle Competitive Intelligence SAP Business One License model Simplified list price per named

Winning against

Oracle Competitive Intelligence

SAP
SAP

Business One License model

Simplified list price per named user

US $3,750 or €2,500

Provides access to entire suite, except optional CRM Partners price aggressively

How partners translate this to proposal prices:

Bus-One partners use list prices as basis for package prices, which are discounted. For example:

$12,600 for 3 named users includes license, implementation, training, and first year support €70,000 licensing and services for 20 users

Use 2-phase deals to help you win:

1. Phase 1: get foot in door & close business Propose functions & processes critical to addressing business challenges. Use pre- configured Accelerators, competitive pricing, to close business

2. Phase 2: Other nice-to- have apps plus service- intensive tailoring services later

have apps plus service- intensive tailoring services later 20 Oracle Confidential: For use by Oracle employees

20

Oracle Confidential: For use by Oracle employees and authorized business application partners only. Do not distribute to third parties.

Winning against Oracle Competitive Intelligence How Oracle Wins against Business-One Partners 1. Execute industry-based

Winning against

Oracle Competitive Intelligence

Winning against Oracle Competitive Intelligence How Oracle Wins against Business-One Partners 1. Execute industry-based

How Oracle Wins against Business-One Partners

1. Execute industry-based solution sell – early references

2. Suggest prospect scrutinize Business-One partner references for support and consulting competence.

3. Pitch Accelerators for fast, preconfigured implementations.

4. Engage with Accelerate partners for ‘prepackaged’ solutions where available

5. Pitch fully integrated functionality that does not require 3 rd party add-ons. Start with essentials and grow functional depth within a single product line.

6. Plan in advance to prepare easy-to-understand demos with PC-like user interface and role-based access.

7. IF multi-location is an issue, use single-instance references.

21

Oracle Confidential: For use by Oracle employees and authorized business application partners only. Do not distribute to third parties.

Winning against Oracle Competitive Intelligence We replaced Business One & beat All-in-One at Challenges: the

Winning against

Oracle Competitive Intelligence

Winning against Oracle Competitive Intelligence We replaced Business One & beat All-in-One at Challenges: the wrong

We replaced Business One & beat All-in-One at

We replaced Business One & beat All-in-One at Challenges: the wrong product for an innovative, growing

Challenges: the wrong product for an innovative, growing company

Could not leverage RFID and serialization to reduce shrinkage in warehouse Poor customer service tools - resulting in poor service in increased headcount Could not meet shipping demands Manual and disparate business processes had to compensate for lack of fully integrated, embedded apps Lack of accurate and pro-active information SAP Business One could not scale to… Support growth and meet customer demands for busy season Absorb newly acquired companies into SAP Business One

Result:

a Q1 2008 EBS High tech Win over SAP!

Growth exceeded Business One scalability SAP’s Enterprise and All-in-One versions were too complex SAP priced aggressively

exceeded Business One scalability SAP’s Enterprise and All-in-One versions were too complex SAP priced aggressively
exceeded Business One scalability SAP’s Enterprise and All-in-One versions were too complex SAP priced aggressively

Why we WON

1. Strategic Partnership

2. Single Vendor Solution

3. Proven Solution and Product Strategy

4. Strong deployment plan & implementation

team (Innowave Technologies)

plan & implementation team (Innowave Technologies) 22 Oracle Confidential: For use by Oracle employees and

22

Oracle Confidential: For use by Oracle employees and authorized business application partners only. Do not distribute to third parties.

Winning against Oracle Competitive Intelligence 5 Questions every SAP prospect should ask regarding any solution

Winning against

Oracle Competitive Intelligence

5 Questions every SAP prospect should ask regarding any solution

Does this product scale? For ex, do I need to switch to another product when I need more robust lean manufacturing functionality? What if my business grows to > 1,000 users?

If I don’t adopt your best practice templates, how much should I budget for consulting services? If I plan to change processes in a couple years, how much to budget for that?

How many sources will I need to contact for support?

Why should I invest in All-in-One or Business-One, when the new Business byDesign is around the corner in 2008?

Will it replace All-in-One or Business One?

23

Oracle Confidential: For use by Oracle employees and authorized business application partners only. Do not distribute to third parties.

COPYRIGHT

COPYRIGHT Copyright 2008, Oracle Corp oration. All Rights Reserved.

Copyright 2008, Oracle Corporation. All Rights Reserved.