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 Which SAP Business Suite Skill is the Hottest?
A Ranked List by Jon Reed of JonERP.com
Published: September 2009
For quite a while, we've been planning a ranked list of the SAP Business Suite skills and that list is finally here. This time, the complete review is done in podcast form, with the SAP Business Suite podcast from the ERP Lounge. So you'll want to listen to that - but we'll present the highlights from that podcast in this entry as well. During the podcast, Jon's co-host, Brian Trout, discussed his detailed BS7 skills rankings. Note that the rankings were limited to the four major "Suite" apps: SCM, SRM, PLM, and SRM.
Before we move ahead, it's also a good idea to read through our general disclaimer about the limitations of hot skills lists.
Remember as you read through these BS7 skills highlights from the podcast that too often, we talk too generically about skills needs.
Skills demand in SAP is highly specialized. Even if we talk about CRM,
some areas within CRM have broad needs and some have specialized needs. Just
saying CRM is hot and SRM is not as hot is not very helpful, so in this feature, we're
going to hone in on the skills needs of each module in turn.
Ranking the SAP Business Suite Skills Demand
Brian has them ranked: (in terms of market acceptance, maturity, and skills demand):
1. CRM (by a wide margin)
2. SRM
3. SCM
4. PLM (distant fourth)
Jon's BS7 skills reader poll results
are different, in terms of the skills folks want to obtain: SCM (45%),
CRM (36%), PLM (11%), SRM (7%) - out of a survey pool of 85 voters. Jon
and Brian explored the discrepancies between these results during
the discussion.
CRM Skills Assessment - Why is CRM the Highest Ranked of the 4?
- CRM continues to mature, each release adds functionality. The real
change has been the integration of the J2EE architecture solution with
CRM 2007, and CRM 7.0 is now "all the buzz." We hear a lot of talk
about CRM 7.0 upgrades these days.
- The PCUI architecture was inefficient at best, with its need for
RFCs back to the SAP system. The new web client UI for CRM is faster,
more user friendly, more content driven. SAP has finally realized the
full integration of the Web App Server with CRM's functionality.
Security enhancements have also increased CRM traction with IDM (SAP's
Identity Management solution). This allows more extension to field
users.
- The main components of any CRM solution are: customer tracking (call
center), service, and opportunity management/marketing and campaigns
(analytic results). What kind of value did your trade promotions
provide? You need more visibility, better master data. All of this is
improved with SAP CRM 7.0.
Breaking down the skills needs in CRM:
Technical CRM: The changes in architecture are the fundamental
differences with CRM 7.0. Customers on CRM 2007 and CRM 7.0 want
consultants who have worked with the UI development tools, including
BSP and the Composite Appliation Framework (CAF). Many NetWeaver
Developer Studio concepts are involved here, but there are nuances to
understand with the transition from PCUI. Web Dynpro logic is also
called into play in many cases. Presenting front-end data on the Portal
brings in other technical needs. Plus there is the Basis server-side
installation/upgrade of the J2EE components. These are all key skills
on the technical side.
Functional CRM: There are functional enhancements in Sales,
Marketing and Service. There are also industry-related trends and
content, for example, in the media and entertainment vertical, there is
SAP Intellectual Property Management (IPM), a skill that is needed.
There is also Incentive Compensation Management with a lot of
customizable commission logic for salespeople. SAP has fleshed out a
great deal of functionality. Those functional folks who understand the
business processes driving this functionality should do well, but the
functional changes are not as significant at the technical ones.
And can a functional person specialize in all three areas of SAP CRM (Sales, Marketing and Service)?
To a degree, yes, especially with the overlap between Sales and
Service, but as this functionality continues to expand, there will be
more of a need for those who have a degree of specialization within SAP
CRM, as is the case for other areas of SAP.
And what about extending SAP to mobile users via CRM? Vishal
Sikka, SAP's CTO, has referred to this in recent talks. Is this
something we can expect to see more of skillwise? Without question. SAP
CRM 7.0's integrated architecture is a major step forward to leveraging
the NetWeaver Mobile Infrastructure (MI), and providing sales teams
with mobile data on the fly via handheld devices. Real-time price
quotes, product configuration data - this gives the customer a more
interactive experience while in the field. The technology is moving
towards making that a reality.
SRM Skills Assessment - Why Did SRM Come in at Number 2?
- Why has SRM moved beyond SCM in skills needs? It's higher because
when you look at the Business Suite components, CRM and SRM have a
broader industry relevance. Whether you're a service company or a
manufacturing company, you need to be able to manage your outside
vendors, conduct auctions, use analytics to assess which suppliers are
most effective. Like CRM, SRM has more cross-industry applicability
than SCM.
- The MM/FI-AP ERP reconciliation of procurement is a simplistic look
at vendor collaboration. SRM has much more sophisticated and dynamic
capabilities. Sometimes it's products, sometimes it's services. You
need intelligent bidding, which is why SAP acquired Frictionless to do
true E-Sourcing. The bidding engine in SAP was nowhere near what
Frictionless could offer.
Breaking down the skills needs in SRM:
- Brian is high on SRM E-Sourcing. Unlike SAP's classic sourcing
capabilities, you can create intelligent business rules with
E-Sourcing. This is much more collaborative and allows you to get the
leveraged services and products you need. There is definite skills
demand in the E-Sourcing area. This is an ASP driven solution that can
be implemented independent of the other BS7 components. Those who
understand this tool and this type of collaboration and a procurement
background could do well here.
- Also: Frictionless also has relevance in other areas - John Wookey's
Software as a Service (SaaS) group within SAP is also building their
apps using this platform. But you need to know more than the latest
tools - you need to understand the range of options with procurement - "This is not your grandpappy's procurement process." If you bring that skills mix into the market, you'll do well.
SCM Skills Assessment - Why Did SRM Come in at Number 3?
Clarification #1: Why didn't APO ever take off? At one point,
APO (Advanced Planning and Optimization). APO used to be the sexiest
thing on an SAP resume. Why didn't it take off?APO didn't have broad
industry applicability. A large segment of the market doesn't need
APO's product capabilities, which relate to manufacturing and finished
goods movement. If you're a financial or health care services company,
you don't need that functionality. Within those manufacturing
companies, there were best of breed players in those areas APO
addresses that were entrenched on customer sites and hard to root out
(i2, Manugistics, and a bunch of industry vertical tools as well). Many
companies had a combination of best of breed tools and weren't ready to
go with SAP APO. When you get into the underpinnings of an optimization
strategy, you are dealing with complex algorithms, and there is not an
ROI justification for going back and changing that.
Clarification #2: SCM is no longer just APO anymore. What else is in SCM now and are there areas in demand?
SAP Event Management (EM) is one area that is looking to provide a
greater amount of control and visibility to goods movement in the
extended supply chain process. Event Management has a lot of viability
in its own right. Then there is SAP's Auto-ID (SAP AII) solution. Brian
has seen this particularly in the pharma industry and others that are
heavily regulated. EPedigree is one such standard that SAP can
support.
Hot skills pick in SCM: SAP's Supply Network Collaboration
(SNC), which Brian thinks we'll be seeing a lot more demand for. You're
getting into the extended web services logic here and how it pertains
to the supply chain network environment. Knowledge of MM/PP tables is
one thing, but there's the knowledge of Web Dynpro development, and
understanding materials movements in a networked context. SNC is a
stand-alone solution that integrates with core ERP, and this can be a
good area for ABAPpers as well. SAP MII and other solutions that give
visibility to the manufacturing process are also worth keeping an eye
on.
PLM Skills Assessment - Why Did SRM Come in Fourth?
- PLM came in fourth due to its narrow industry acceptance and a lack
of overwhelming market demand for the solution. Brian doesn't hear
customers asking for this solution. Originally, the product was a split
between Recipe Management, with a link to PP-PI for Process Industries,
and Environmental Health and Safety (EHS). Now EHS is no longer part of
PLM, so the demand for PLM has narrowed further. But we see the need
for it in recipe-heavy industries like chemicals and food prep. The
broader PLM vision of using cProjects (Collaboration Projects) and
having Portal-based collaboration with multi-vendor engineering
scenarios - this just hasn't materialized in a high-demand way. We see
it some in Aerospace and Defense, but when you don't have that
specialized needs, the further you get from that, the less demand for
PLM we see.
- Sometimes in the music industry, a band has some success and then
someone breaks off solo and has their own career. Is cProjects the
Justin Timberlake of PLM? Brian thinks that's a fair comparison, though
cProjects may not like the analogy. But we have seen a wider use of
cProjects functionality, with uses like pipeline management.
Suite Skills Analysis Wrap Up
- Common themes from the Suite skills discussion: visibility,
integration, web services and collaboration platforms, and a conversion
between technical and functional skills. The platform and Suite
functionality is really converging, and the need for deep business
process know-how across the board gives these discussions a BPX
context. When you bring the NetWeaver tools and lay them over these
Suite products, there is a convergence of techno-functional skills
needs. When we look at business processes that extend beyond the
enterprise, we think of BPM tools, and the need to have tools that are
not proprietary or that have an SOA framework that allows for
interoperable collaboration.
- So are CRM, SRM, PLM, and SCM, fading from view? Is this the end of the standalone Suite,
with more fluidity in end-to-end processes? Is integration of core
modules and Suite components more important now than just having
standalone CRM skills, for example? Brian sees this a bit differently.
He thinks it's the industry specialization and know-how that will be
the key here, with SOA tools making everything more flexible. So you
want to be able to connect industry tools and functionality with core
ERP software. You need to understand how those processes are driven
within your industry and how the tools can connect, often via web
services. Whether you have a Siebel or SAP background is going to be a
lot less important than whether you understand process modeling, with
less emphasis on whether you know where tables are located within a
specific application.
BIG OL' FINAL DISCLAIMER: Even though we stand by our
Suite skills rankings, that does NOT mean that someone should just
chase what's hot and not pay attention to their own strengths. There
are successful consultants across all these areas. If you're a PLM
expert or have a PLM/engineering background, chasing CRM because it's
hot makes no sense. It's the combination of passion, focus, and skills continuity that builds a sought after SAP consultant. Just
because Brian Trout said that CRM was the hottest area doesn't mean you
should abandon an area where you have a competitive advantage and
really understand the tools and industry. That's what we call "market
insulation," you have a viable track to stay invested in.
Bonus: SAP is finally pulling these Suite products into a standard
naming convention (7.0) and how it matches with the core ERP solution.
There is still a lot of shelfware to be implemented, hopefully we'll
see more action as the market picks up.
There is even more content in the BS7 skills podcast itself, so make sure to check that out also.
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