Enterprise software giant SAP has introduced SAP Business Suite 7 software, based on the strategy of making it easier and less expensive for users to upgrade their existing business systems. The new SAP Business Suite includes enhancement packages that include more than 150 functional innovations and that address the entire suite of applications, including ERP, customer relationship management, supplier relationship management, supply chain management and product lifecycle management, as well as specific industry applications. All components of SAP Business Suite will be on the same release cycle.
These enhancement packages are designed to allow users to select and deploy only the functionality they need without upgrading their solution. SAP began testing this concept last fall with its SAP ERP solution, and to date the company has received 1,800 downloads from the first three generations of enhancement packages.
We anticipate that the enhancement package strategy will remove the upgrade barrier and help us to more efficiently deliver the innovation we need for continued success," notes one customer, Ed Toben, SVP, GIT & Business Services with consumer packaged goods manufacturer Colgate-Palmolive. "With all components of SAP Business Suite on the same release cycle, the costs associated with implementation and testing of new functionality are greatly reduced.
Explaining SAP's approach, Jeff Woods, managing vice president, ERP and SCM with analyst firm Gartner, says, Large enterprises are skeptical of IT projects that involve foundational investments that arent tied to delivering fast value to users. Big projects that only promise a foundation for future value delivery are too risky, too costly and the benefits are difficult to justify to business leaders. Enterprises want integrated IT solutions that require only investment that is tied to immediate business value--but without losing the cost, information integrity and process integrity benefits that a strategic suite provides.