How Should SAP Consultants Respond to the Down Market?
It’s shocking how quickly our economic confidence can change. Along with that, professional uncertainties are exposed. So how should SAP consultants respond to the current market conditions? I have put together the following pointers based on my research to date. Just keep in mind the obvious disclaimer that no one knows exactly what lies ahead.
In this kind of economy, there aren’t many SAP opportunities to be found, but as noted, this is nothing personal to SAP - virtually every vendor is negatively impacted by such a dramatically bad lending market. No crystal balls here, but we are all hoping the lending market freefall will begin to stabilize. The rest of my advice here is subject to returning to some normalcy. The economy will likely be sluggish well into 2009, but sluggish economies still create opportunities and SAP can survive, and sometimes even prosper, in a limping economy.
2. This is not a good environment for breaking into SAP. Senior SAP professionals are finding the job market tighter, but there is still a need for seasoned subject matter experts. However, this is not an easy market for those trying to break into SAP for the first time. Those who are in that situation should be especially careful about investing thousands of dollars in SAP training. Smaller online training investments may still make sense. The key to breaking into SAP is making sure you don’t overspend and focus on providing value using your existing skills – hopefully to companies running on SAP. Work from the inside, spend less.
3. Fewer new projects are being greenlighted, but incremental improvements and upgrades on existing projects are moving ahead in some cases. Opportunities in SAP are sharply focused right now, and favor SAP professionals who have NetWeaver/ERP 6.0 upgrade skills. Core functional skills in SAP Financials, HCM, and Logistics are good places to be right now. Core technical skills pertaining to NetWeaver components like BI, Portals, and XI/PI are also attractive areas. Some aspects of CRM are also useful right now, because companies must aggressively sell and serve customers in any economy. Obviously, Solution Manager is another tool that comes heavily into play when we talk about upgrading and managing core SAP activities.
4. Don’t stop your pursuit of eSOA and “Business Process” skills, but understand that the pace of innovation may slow. You can expect some of the heightened interest in SAP BPM and eSOA to go on the back burner right now as companies move into “bunker mode.” This does not mean that SAP consultants should mimic that behavior and back off from skills innovation. We could debate whether companies should back off from their own pace of innovation, but the debate is irrelevant because most companies have already retrenched. I recommend checking out my BPX skills webinar and continuing to pursue those BPX skills, but with the goal of adding them to your current skill set gradually. In such a market, “soft skills” like deeper industry expertise and project management methodologies might be the best BPX skills to pursue. Spending time with new process modeling tools may be less urgent than a month ago, since many companies are putting their own exploration of such tools on the temporary back burner.
4. Customer acquisition and retention remains crucial, and that should inform your skills approach. Interestingly enough, Web 2.0 type skills may be the one area of “new skills” that remains relevant even in this down period. That’s because having the edge on customer experience and web site user-friendliness and interactivity is more important now than ever. This is about putting yourself in your customers’ (or employers’) shoes, and viewing the market from their vantage point. The more you can contribute to either spending efficiencies or revenue stabilization, the more valuable you are - in any market.
In terms of your SAP skills, now is probably not the time for bold new moves, but it’s still important to add to your skill set. The biggest key is being up to date on SAP releases pertaining to your core skills, and the next biggest key is adding those BPX skills that pertain most directly to your current circumstance. If you are interested in more about how BPX skills can help you secure new job opportunities, read my latest contribution to PAC’s “Feeding the SAP Ecosystem,” blog, where I talk about how SAP BPX skills can impact a job search - not so much during the resume submittal process, but certainly during the interview process, where consultants with a more “wholistic” skill set almost always have the edge. It’s a pretty good time to have such an edge!
5. Silver lining: “hiring freezes” favor consultants. It’s foolish to talk about silver lining in a time like this, but it’s true that the kinds of hiring freezes many companies, including SAP itself, have implemented, favors those with a contractor’s mindset. You may find that some SAP customers that were previously focused on hiring “permanent” employees may now be more inclined to bring you in on a contractual basis. It’s worth checking. If you have good SAP skills, make sure you’re on the map with firms like B2B Workforce, a client of mine, that specialize in placing independent consultants.
Final thoughts for now.
It’s understandable that companies with large scale operations would scale back to avoid massive shortfalls. But we need to be careful, as individuals, not to be sucked into that same mentality. When we make fear-based career decisions, we often dig a deeper hole in the long run. That’s because life has a way of limiting the options of those who self-limit. I was meeting with an SAP consultant yesterday who was torn between options, and I told him to “move towards the inspiration.” That does not mean we should be in denial of changed economic circumstances. But we ultimately have the best chances for success in areas of life we are deeply passionate about and committed to. This is no different in an SAP context.
So if you were excited about your plans to move into BPX areas, by all means, continue in that direction. Yes, you may have to cancel a trade show you can no longer work into your budget, but you can still afford to go online and work on those skills on BPX or SDN. Now is a time to be ruthlessly practical, but not at the expense of renouncing the pursuits that fired our imaginations in the first place. Another way of saying it would be: look for the doors that open as others close. Whether it’s on your own project or in your personal sandbox, you may see an opportunity created by this market that you did not have before. One example might be: a company that slashes its marketing budget and is suddenly less resistant to “Web 2.0” strategies. You may be the person ready with the proposal about “Web 2.0” options that are not expensive, but do require an investment of time, such as the maintenance of a Twitter channel.
It’s too early in this “new crummy economy” to report success stories, but I’m certain that when we hear them, they will come from those who adjusted to the new market conditions, and proceeded to execute on strategies that were geared for this economy and stemmed from their existing expertise. Those with a "deer in the headlights" response won’t fare as well. I’ll be sure to report back as soon as I learn more. In the meantime, I welcome your comments.
October 13th, 2008 at 1:32 pm...
Really good article.
October 21st, 2008 at 7:57 am...
Its a good article. Thank you Jon Reed and Vishnu Vardhan!
:)
October 22nd, 2008 at 3:37 am...
Thanks Jeeva, glad you liked it. Not quite sure how Vishnu Vardhan fits into this post, but thanks for the good words.
I did another article on the state of the SAP freelancer for PAC’s Feeding the SAP Ecosystem blog also (feedingthesapecosystem.com)
- Jon Reed -
October 23rd, 2008 at 5:16 pm...
Hey Jon sir,
You are really SAP-ERP Master Mind.thankyou for the support.please always be with us for become our better career guide.
October 24th, 2008 at 4:11 am...
Avirat,
I really appreciate your kind words. It is always my hope that the passion and commitment I feel for providing SAP professionals with a career roadmap comes through. I’m not really a master, though, just someone who works really hard and tries to stay focused.
I think the best thing is not to have to look to one authority, but to have many different resources and sounding boards. There are great SAP conversations to be had online, on SAP BPX, SDN, SAP Toolbox, and many other places. Perhaps also in this blog.
Increasingly, on places like Twitter where I have a feed also. Hopefully the sum of all these conversations is to make us better SAP professionals and smarter consumers of educational resources like certification and online training.
- Jon Reed -
November 4th, 2008 at 11:47 pm...
Jon,
As usual you bring up some really interesting points. The slow-down in the economy is definitely affecting those in the industry that are focused on implementations. Fewer projects mean fewer jobs. What I have found is that our path through this slow-down seems to be going quite OK. Our company focuses on helping existing SAP customers utilize their software better, this realizing savings they are missing out on. In slow times you either have to drive for business or reduce costs to stay ahead of the game. It’s not so easy do the first option so the 2nd option becomes more attractive. If you are in this space, know what you are talking about and can put your money where your mouth is (i.e. deliver on your promises) then the slow-down will not effect you as much. Who doesn’t want to save money? Just some thoughts from a different point of view.
November 5th, 2008 at 5:01 am...
Kevin,
Thanks for your good comment. I know I get a lot out of your ERPgenie.com site, so it’s nice to have you chime in here as well.
I would agree with your point of view. While major new implementations and projects are not happening as much right now, if you can help companies get the most out of their existing functionality, either through cost savings or revenue increases, you have something to offer. And savvy SAP pros can definitely do this. I’m thinking that those who have a handle on post-go live methodologies, including RunSAP, may also have an edge here. There’s a lot of underutilized functionality in SAP that simply needs some expert guidance in terms of better utilization.
When I posted this initial entry, I was a little reluctant to say too much because we have a lot to learn still about how the economic trends we are dealing with will play out. But one thing I can add now is that I continue to see a decent amount of job activity in core SAP functional areas, as well as needs pertaining to ERP 6.0 and NetWeaver functionality. That would make sense, because even experienced SAP customers do not necessarily have in-house personnel with skills in the latest and greatest areas of SAP.
So, for those consultants and firms like yours, that have a clear value proposition, and strong business process knowledge, deep SAP experience, and skills in ERP 6.0 and core NetWeaver products, there may not be nearly as much of a slowdown effect as some others in the market are experiencing. Keep me posted on what you’re learning out there and I’ll do the same!
- Jon Reed -
November 11th, 2008 at 5:58 am...
Thank you Sir for a very interesting and good article. After reading your article , we got some relief in this difficult situation.
Thanks for guiding us to think in a positive way.
November 15th, 2008 at 8:39 pm...
Jon,
Good article and, by the way, I really like your website. The slowdown in the economy is having a big impact in the BI consulting field as well (I am a BI consutlant). You’re right, breaking into consulting right now for beginners will be tough. I also agree with you that it is a good time sharpen existing skills, but not such a good time to branch out into new areas.
If I may, I would like to mention just a few things that have helped me, as an independent BI consultant, find new gigs:
1. Cold calling. A lot of consultants feel that cold calling is beneath them, but some of my best gigs have come from me picking up the phone, calling companies, and asking them to hire me. By doing that, you bypass the recruiters, agencies, and consulting firms, which for me is a best case scenario. This approach requires persistence and a high tolerance for rejection.
2. Create a website. It is amazing to me how few independent consultants have websites. Websites are the new brochures, and creating one is a no-brainer. All you need is a description of what you do, a photo, your resume, a summary of recent projects, and maybe a list of clients. Once you have a website, you can advertise on Google’s AdWords, which I have had some success with.
3. LinkedIn Discussions. LinkedIn has groups, including several SAP groups, where you can post discussion topics. It doesn’t cost a dime and it might get you noticed. There is a lot of clutter out there, but I have received a few responses from my LinkedIn posts.
I would love to hear your comments. Keep up the good work, Jon.
Mitch Paioff, Author, Getting Started as an Independent Computer Consultant
November 18th, 2008 at 8:40 am...
Mitch, great post!
I think you’re the first person who ever posted to my blog who was not an SAP person, with the exception of those looking to break into SAP.
I agree with your suggestions and it shows us that there are many parallels in this market for independents, whether your focus is on SAP or BI or Oracle or what have you.
A few comments on your comments:
1. Cold calls - agree that this can be a good tactic, but on the SAP side at any rate, you almost always have to go through an agency in the end. So, when you call, it’s good to have an awareness of that, so that you can actually say, “and it’s no problem for me to work through your preferred vendor” or some such line. Project managers like that kind of initiative if you’re willing to play ball with how they hire.
2. Create a web site - another good one. With this caveat: I believe web sites can be very simple to start with, but they MUST be kept up to date. I have almost no problem with web sites but once they get out of date, it’s an image issue. So, you should pick a web structure that you can maintain. I would personally suggest setting up a wordpress based structure for a web site, that allows commenting on your blog posts. You can get a good wordpress web site set up very cheaply these days.
3. LinkedIn - definitely. There are many high caliber SAP professionals on LinkedIn. I’m not too impressed with the “wild west” vibe of the groups now that they have allowed discussions, it’s mostly a mess of job postings, but one cool thing can be to simply do some one to one networking with others in your LinkedIn interest groups. So, for example, an SAP HCM person can hook up with other folks in similar groups and add them as connections. Of course, for SAP folks, nothing beats participating in SAP’s own online communities in my opinion, I see LinkedIn as secondary to that.
The topics you are touching on actually come back to a different blog post I did on the keys to marketing yourself as an SAP consultant back in July: http://snurl.com/5qp4y. I would suggest those who have interest in that topic to look at those as well, not all of which are as affordable as others, but do have relevance to this kind of discussion.
- Jon Reed -
November 21st, 2008 at 5:13 pm...
Hi Jon, Once again Good Job. I am an ardent fan of you following your advices and updating my knowledge base which helps me to keep up with the current trend.
I would like to pose you a question, keeping SAP CRM consultants in mind.
What will you suggest the folks out there looking for CRM implementations, which happened to be very slow in this current economic conditions, will you suggest the consultants to change the lane and go with the core functionality of SAP Business suite like SAP ERP or wait for the customers who are reluctant to try the additional functionality of the SAP Business Suite. Please throw some light on the current conditions and help us in choosing the path.
November 22nd, 2008 at 11:53 am...
Hello Dave.
It’s a good question you have. I’ve been compiling a list of articles on the SAP skills that are still relevant in the downturn, and hope to publish this on the PAC web site shortly, I will post a link to the piece as soon as it is up, it should be up Monday.
The problem right now is that we have to throw a lot of ideas about what skills are in demand out the window as this market has taken a turn that puts all our assumptions in question.
Having said that, I’m not sure that there is any area of SAP that is immune from these problems. The issue you have moving into the ERP area from CRM is that you are then competing with other consultants who have deeper experience in the core ERP components of SAP.
The other thing is that CRM is still a key issue for many customers. Even in the downturn, it’s important for companies to foster relationships with potential and existing customers. So, some aspects of SAP’s CRM functionality should have some continued demand. Anything pertaining to customer-facing work or empowering sales executives has some appeal, whereas the more “conceptual” aspects of CRM, like CRM Marketing, might be less marketable right now. It’s about action and directly empowering customers and salespeople, and less about higher level “branding” projects, so make sure the CRM focus is right within your skills. Though we know that the CRM market in general has had many challenges, challenges that all vendors are dealing with, such as the threat of hosted solutions like salesforce.com.
I guess CRM is not the best place to be in SAP right now, but it’s also better than other areas. I would probably put it somewhere right in the middle. One thing I rarely advise is making panic-based career moves. Your past experience is really important, so “jumping ship” to a new area of SAP can be a real mistake.
But, moving into other relevant areas could be good. If you’re really concerned about CRM marketability, you could look to maybe get more involved in SD, focused on the integration points between SD and CRM. Perhaps SD experience in ERP 6.0 would help you to compete against more experienced SD folks who don’t have ERP 6.0 skills yet.
I will write more on the Business Suite soon, so check back soon for more links on this.
November 28th, 2008 at 11:00 pm...
Hi Jon,
I am New to SAP and looking for your valuable inputs….
I am a software programming with 7 years of IT experience, currently involved in customization (using a proprietary language) of a retail banking product. As the overall economy is gloomy and the financial industry being the worst hit, I am looking for a possible career change (or atleast a backup plan) that might help me in this downturn as well as in the long run and the 1st option I am looking at is SAP.
FUNCTIONAL OR TECHNICAL LINE?
I am planning to get into SAP, more towards functional areas and not technical for the following reasons.
1) Given the fact I have worked more in a proprietary language and since I Do not have much exposure to open programming languages like Java, .NET etc
2) Few articles that I have come across gives an indication that technical skills like ABAP can be easily offshored compared to functional skills.
(I might be wrong on the above)
WHICH FUNCTIONAL MODULE TO CHOOSE?
I have shortlisted FI/CO and HR purely based on the current market trends compared to other SAP modules. I am assuming that even though FI/CO looks to be a better choice in my case, based on my banking experience that I have got, still it makes no difference with HR module in terms of learning, given the fact that FI/CO is vast compared to HR and also since I need to start from the basics in both cases.
I know I threw a lot in here and probably my assumptions are incorrect, But Please provide me your valuable suggestions so that I can decide:-
1) If this is the right time to switch to SAP given the market condition and if not now when?
2) Whether to choose Technical or Functional area.
3) Which skillset to choose in both technical/functional field.
Thanks in Advance!
Regards,
Vaas
December 2nd, 2008 at 7:45 am...
Hey Vaas.
To answer properly all the dimensions of your detailed question would take me a couple of hours, and I would end up repeating a lot of the information you can see on this site.
But the short version is: I don’t know if this is a good time to break into SAP or not. I suspect because your background is in banking and the banking industry is struggling, then maybe now would be a hard time. But, Bank of America has a major SAP install in the works, maybe that would be a good company to keep an eye on.
To switch from technical to functional and to switch from non-SAP to SAP is actually two job changes at once. Usually the best thing is to make one job change at a time, so I’d start by finding a technical role on an SAP project, then move to functional over time.
There’s no real way to “time the market.” All you can do is apply for open positions and see who responds. In the meantime, you look to maximize your skills on your current project, and you should be studying as much object oriented and web based programming as you can, as well as any SOA-related skills. It wouldn’t hurt for you to try out SAP’s composition environment and continue to educate yoruself on the world of SAP in the most hands-on way you can.
- Jon Reed -
December 9th, 2008 at 12:51 pm...
Jon-
You mentioned some good point about BPX area, But I am also seeking your expert comments on GRC area.
GRC has brought so many products based on access/mitigation controls, internal controls, risk management and most of these products are based on certain compliance norms. Do you think GRCians can see light from the horizon sooner or later considering the current economical crisis. Don’t you think organizations should invest more in Risk Management and going beyond Compliance. Do you expect compliance regulations to grow with additional clauses or chapters as the after effect of the current crisis. Overall I want you to speak on SAP GRC product line and scope considering the current and future market.
Regards,
Amol Bharti
March 12th, 2009 at 9:27 am...
Dear John,
I have decided to take up SAP - HCM course in a few days. I come from more than 2 years of HR recruitment experience. Is it a viable option to spend a lot of money on SAP course in this recession ridden market? Please advice me on this, thanks in advance.
Regards,
JK.
March 27th, 2009 at 6:20 am...
JK, I’m sorry for the late response to your comment. One aspect of this economy is that I have found myself in client work crunches that sometimes slows down my real time response on JonERP.com, so bear with me. I have written a lot on the value of SAP training and certification in this blog. My views on this really haven’t changed due to the down economy. I don’t see training as a “quick fix” way to get into SAP, but as a long term career investment. So, whether training is viable depends on: how much money you have, and whether you are expecting your training to land you an SAP job all by itself. The keys to landing that first job in SAP have more to do with savvy and persistent marketing of your existing skill set than anything. Training tends to help seasoned consultants more than those trying to break into SAP. Check out my posts in the “SAP certification” and “breaking into SAP” categories in this blog for more on this.
- Jon Reed -
June 10th, 2009 at 8:47 am...
Hi Jon,
Great Article by u!
I have joined SAP FI/CO after working for 11 years in Finance & Accounts. Is it a right decision in terms of Career growth. I did not find Accounting having as much of a great growth potential as SAP.
Was I right in my decision or should I reconsider my stand?