SAP C/4HANA leads discuss future of CX platform

The SAP C/4HANA group — like the rest of SAP — saw new leadership just take the reins previous yr. Paula Hansen, formerly vice president of income at Cisco, took more than as senior vice president and chief profits officer of SAP Buyer Encounter in February 2019. In October, former Salesforce Internet marketing Cloud CEO Bob Stutz turned president of engineering and operations for SAP Buyer Encounter. We interviewed them both of those through SAP’s Sapphire Now virtual person convention.

Paula, what’s SAP’s current definition of ‘customer encounter,’ now that you have Qualtrics voice of the customer and customer analytics clouds under your roof?

Paula HansenPaula Hansen

Paula Hansen: I imagine customer encounter is any conversation that a organization or brand name has with their clients in order to listen to clients, understand them and to interact with them. It spans a number of capabilities within of most corporations, from internet marketing to income to commerce to customer service.

I imagine it really is holistic in nature, in terms of how that organization or brand name desires to foster a relationship developed on trust, demonstrate they are knowledge and listening to the customer’s desires, interact with them in a meaningful and appropriate way, and produce on the assure that they’ve designed to the market place and to the individual customer.

Bob, your initial stint at SAP was in the mid-2000s, on the CRM group. How does SAP CRM and CX glance various now?

Bob StutzBob Stutz

Bob Stutz: It can be evolved, with the acquisition of Hybris and then also the acquisition of CallidusCloud. So the portfolio has gotten substantially even bigger — almost everything from income performance management as perfectly as e-commerce, which was not there before. Presently, primarily with the corona[virus] disaster, I imagine firms recognized that cloud is likely the most essential issue. Those clients that ended up continue to caught on premises experienced a incredibly really hard time speaking with their clients. It can be taken fairly a extensive time, but I imagine cloud is now turning into the regular, even in SAP.

Speaking of the coronavirus and stay-at-dwelling orders remaking small business workflows and customer encounter, what’s likely on with SAP C/4HANA consumers?

Hansen: We see firms hunting to construct far more adaptable small business products to adapt to the changing market place disorders, alterations that seemingly occurred right away. They are hunting at strategies to interact with their clients as a result of far more electronic channels to service their clients, to collaborate and deliver info to them and support their small business with commerce. And they also need to have to support their newly virtualized workforce.

Because the starting of the pandemic, [e-commerce] order quantity is up roughly sixty% from in which it was this time previous yr.
Paula Hansen SVP and chief profits officer, SAP Buyer Encounter

The two biggest regions of seismic improve are in the regions of commerce and schooling. Commerce is likely as a result of tremendous improve. Because the starting of the pandemic, order quantity is up roughly sixty% from in which it was this time previous yr. And then the GMV [gross products value] they are processing is up 148% yr more than yr. In just the delivery of that electronic commerce, we see folks evolving their small business products — B2B firms now likely direct-to-buyer, this sort of as Brakes Team. They launched a website in seven days and took all the food stuff and drinks that they would commonly provide to schools and catering enterprises direct to the buyer.

We have folks performing now far more remotely, and so the need to have for distance discovering and continuity of schooling is also truly significant. So we have viewed a major uptick in the need to have for that. We have turned on a absolutely free functionality as a result of SAP Litmos [discovering management platform] we phone the Remote Readiness & Productivity Academy, to deliver firms with obtain to distance discovering and distance discovering material, so that their income and service reps can stay successful.

How has the pandemic shifted priorities as much as the products growth roadmap?

Stutz: For the most portion, we stayed with our roadmap, [but we moved up some growth] around commerce. It can be been like Black Friday each day. There ended up some improvements around performance and things that we accelerated that we experienced prepared [in time for the impending November’s] Black Friday, but Black Friday arrived incredibly early this yr.

Are you factoring a ongoing e-commerce surge into your products roadmap? How substantially of the bump do you imagine will be lasting?

Stutz: I do not imagine it will sluggish down. If anything, firms have recognized that e-commerce is a beneficial channel regardless of whether you happen to be a B2B or B2C organization. Likely forward, what we are going to see is a ongoing enhance in e-commerce.

SAP has been through a large amount of leadership improve in the previous yr, including you two. How is that influencing SAP C/4HANA moving forward? What new perspectives are you bringing to the desk?

Hansen: I imagine both of those Bob and I truly feel truly good about the collection of assets that we have, across the customer encounter portfolio. We also truly feel truly very pleased of SAP’s sturdy heritage in the back again place of work. The pandemic [proves] there is good value when you bring the data, insights and analytics of the back again place of work closer to the customer.

As we glance forward, one particular of the things that Bob and I are both of those hearing from our clients is the need to have to shift far more ability into the palms of clients and shoppers. In a CRM-primarily based customer encounter, for several years, there is been a large amount of aim on the customer journey. A large amount of periods, that truly is tailor-made for the organization or the brand name — concentrating on collection of data and measuring their small business KPIs. What we see and hear from our consumers is that their clients want the regulate of the encounter. They are hunting for small business companions that can help construct a trustworthy relationship with their customer, and give the customer the actual ability in terms of the encounter.

Bob, you just arrived from Salesforce. On the outside the house, SAP and Salesforce glance as various as night time and day. Is it like that on the within?

Stutz: I imagine all software package firms are the very same in a large amount of aspects. I imagine the differentiation truly amongst Salesforce and SAP is truly around the simple fact that SAP has been in the marketplace a extensive time, primarily in the ERP facet of the household. Each individual organization fairly substantially operates their small business on SAP. The established of items, regardless of whether it really is supply chain ERP, finance, procurement, are fairly impressive, ideal? You few it with the entrance-conclude things that we have around commerce, internet marketing, income and service as perfectly as income performance management. I imagine that is one particular of the major differences amongst Salesforce and SAP: SAP is the correct conclude-to-conclude [technological innovation stack].

Bob, you’ve worked for all the main CRM gamers starting with Siebel, then Oracle, Microsoft and Salesforce — and now you happen to be with SAP a next time. At what level on that continuum did CRM morph into CX? What was the driving craze or technological innovation that received us listed here?

Stutz: Even if you go back again to the early days of Siebel, the bulk of people’s small business was actually in customer encounter. It was working all the significant phone centers in the earth for income service, order management. So I I’m not absolutely sure if it actually at any time morphed. I imagine it was normally there.

What altered alongside the way was the cloud, and how folks glance at customer encounter. In the early days, CRM experienced form of a undesirable status. A large amount of unfulfilled claims and a large amount of implementations that never ever truly fulfilled the anticipations of clients. The technological innovation has gotten so substantially superior. And I imagine the skill to communicate across all the various channels with shoppers and clients has turn into so impressive. We definitely are residing in a earth of customer engagement, customer encounter.

Editor’s take note: This Q&A was edited for brevity and clarity.