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What Does It Take to Become a Next-Generation Business?

Reach a Higher Level with SAP and Partners

by Kevin Gilroy | SAPinsider, Volume 15, Issue 4

October 1, 2014

Next-generation businesses recognize technology as the differentiator in the battle for market share and growth. Quickly accessible, cost-effective, and rapidly deployed, cloud-based solutions are paving the way for enterprises to grow their innovative ideas and gain a competitive edge. Learn how SAP and partners can help customers determine their path to the cloud and implement the right solution to meet their individual needs and challenges.

 

Companies that embrace technology to grow are the companies of tomorrow — they are “next-generation” businesses. These organizations, many of them small and medium-sized, use technology to level the playing field among their global competitors. Technology allows them to focus on their business, and in many situations allows them to completely rethink competitive market dynamics. To gain a competitive edge in the demanding global marketplace requires efficiency, agility, analysis, and, above all, simple technological solutions. 
 
SAP partners are key in this equation, as they understand the unique challenges companies face, such as how to deploy cost-saving cloud solutions specific to an industry. From solution discovery, to implementation, to success, partners are instrumental.

Where Growth and Technology Intersect

The greatest strategies often revolve around ideas the market has not yet seen, and ambitious, growth-oriented companies lead the pack in driving innovation. Once the idea moves off the  cocktail napkin, the production of that idea requires infrastructure. It also requires technology that can mold around the current work, and scale with it as it grows in size and complexity. This technology needs to keep communication open, finances flowing, production managed, and control intact. Quickly accessible, cost-effective, and rapidly deployed, cloud technology is paving the way for enterprises to grow their innovative ideas. 

SAP and its partners help organizations set themselves apart by implementing solutions focused on the end user.

With software as a service (SaaS) in the cloud, companies do not have to worry about building an in-house IT department or purchasing all the hardware to host memory-heavy programs. The cloud allows next-generation businesses to quickly get ideas up and running, and with tools for collaboration, they can crowdsource information to make their creative ideas even stronger. Ultimately, an idea is only as strong as the platform on which it is built.
 
An enjoyable user experience is inextricable from SaaS programs. Due to the popularity and ease of use of smartphones and tablets for consuming information, users now expect more from their business software, including one-click solutions, a nice design, and well-attuned features. Understanding and implementing this intuitive and delightful user experience enables organizations to become part of the next-generation landscape. SAP and its partners help organizations set themselves apart by implementing solutions focused on the end user.
 
With this in mind, SAP has greatly expanded its cloud offerings to be “the cloud company powered by SAP HANA.” And SAP partners work alongside companies of all sizes to help them determine their path to the cloud and implement a cloud solution.1 Cloud environments are simple to set up, easy to use, and include many of the bells and whistles of on-premise software packages. Add improved flexibility, lower costs, and infinite scalability, and you can see why college students and Fortune 500 companies alike use cloud technology.
 
The cloud not only helps a two-person startup to grow, but also enables a midsize company with four locations and 750 employees to expand globally and stay connected in real time. And now, even the largest of organizations can benefit from the cloud’s usability and flexibility.

What’s Brewing in the Cloud

One next-generation company that has had great success with a cloud solution — and with an SAP partner’s expertise — is Avery Brewing Company from Boulder, Colorado. Over the past 21 years, it has grown from producing 100 barrels of beer in a garage to producing 60,000 barrels in a brewhouse. As Avery expanded, production planning became more complicated due to information being scattered among various spreadsheets and papers. It was difficult to make decisions when there were multiple versions of the truth. With an ambitious goal to build a new facility to meet demand and produce 85,000 barrels annually, it became critical to have all data in one central location and accessible in real time.
 
To tackle this challenge, Avery decided to adopt OrchestratedBEER, a cloud-based solution built on SAP Business One (see Figure 1). The system tells brewers what raw materials they need to buy, how much to buy, and when to buy them. OrchestratedBEER does this by integrating data from inventory tracking, accounting, production management (see Figure 2 and Figure 3), material requirements planning (MRP), supply chain management (SCM), and even customer relationship management (CRM). This results in lower costs, effective inventory management, and more accurate business forecasts (see Figure 4).

A user-friendly Financial Overview Dashboard within OrchestratedBEER

Figure 1 — A user-friendly Financial Overview Dashboard within OrchestratedBEER

“The cloud scared me at first,” says Conner Helton, controller at Avery Brewing Company. “The IT background that I have tends to lead toward on-premise everything because I can put my hands around it. Since we’ve made the decision to do it, the benefits have been amazing. It’s simple. My data is safe and secure, and I don’t have to pay an IT manager directly just to touch it. It’s backed up constantly and I can get to it from wherever I have an internet connection.”

The OBeer Production iPad app for OrchestratedBEER 

Figure 2 — The OBeer Production iPad app for OrchestratedBEER

A monthly view of a production schedule in the OrchestratedBEER application

Figure 3 — A monthly view of a production schedule in the OrchestratedBEER application

Avery was not alone in making this happen. Its SAP industry partner, Orchestra, helped implement SAP Business One in the cloud to make sure the business saw an immediate return. Based in Beaverton, Oregon, Orchestra is a business technology provider for small and midsize companies in the US. It is just one of more than 11,700 SAP partners around the globe that can help every business grow. The partners bring regional and industry knowledge and understanding, have an ability to customize solutions to meet specific market needs, and are backed by SAP resources.

OrchestratedBEER provides insight into future inventory

Figure 4 — OrchestratedBEER provides insight into future inventory

A Next-Gen Swiss Army Knife

Next-generation businesses recognize technology as the differentiator in the battle for market share, and each business has unique technological needs and challenges. To address those challenges, SAP solutions are simply customizable, like Swiss Army knives. Whether a company needs a hacksaw, a blade, a corkscrew, or just a toothpick, SAP has the right solution to help the business grow. To help you choose the right tool, SAP’s expansive partner network provides industry-specific expertise and know-how.

Viewing technology as more than a requirement can lead to incredible results for your business, just like it did for Avery Brewing Company. As the cloud grows and new innovations are deployed within it, the next-generation businesses that are on the forefront will reap the market benefits.

1 For more about SAP partners’ efforts in the cloud, see Jennifer Schulze’s article “Give the Business and IT Choice in the Cloud” in this October-December 2014 issue of SAPinsider. [back]

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Kevin Gilroy, SAP
Kevin Gilroy

Kevin J. Gilroy (kevin.gilroy@sap.com) is Senior Vice President and General Manager of Global General Business Segment and Indirect Channels at SAP. In this role, he oversees Channel Sales and Programs across all global indirect channels, and strengthens SAP’s competitive advantage in the global SAP reseller ecosystem across all market segments. He joined SAP in 2010, after holding positions at Arrow Electronics Enterprise Computing Solutions, OnForce, and HP. He completed his graduate studies in finance at St. John’s University, holds a bachelor’s degree in finance and economics from Long Island University, and received Advanced General Management Certification from INSEAD.



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