Cloud Wars Live with Bob Evans

AI, Industries, and Customer Experience

The Big Themes

• Unified SAP strategy: SAP strategically integrates Customer Experience (CX) and Industries, leveraging its status as a big enterprise with 400,000+ global customers. Its unique approach of combining strengths offers comprehensive tools from supply chain to enterprise resource planning (ERP) for a seamless, industry-focused experience for a diverse customer base.
• Retail evolution: The retail space is evolving into a combination of multiple industries, with a focus on providing a smooth, connected experience for customers from discovery to fulfillment. Every step of the journey, there's a promise to the customer that needs to be met, which software can help fulfill.
• Business outcomes and AI: It's critical to focus on business outcomes rather than getting overly caught up in the technology itself. The goal is to deliver tangible value to customers and optimize operations. SAP's approach to AI involves solving for business outcomes first and avoiding distraction by the technology itself.

The Big Quote: “... what SAP will do this year, and in the years to come, is [to be] laser-focused on the outcome of what our customers are asking, independent of solutions. Optimizing the whole, looking at it as a connected, intelligent CX, that solves for outcomes at every step of the journey."

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Episode 48 | Vendor Challenges

The Big Themes:

• Contract management: Wayne and Bob discuss contract renewals and price hikes with a focus on SaaS agreements. There's an enduring need for a proactive approach and transparent communication with vendors. Metrics, scalability, and adaptability are touched upon as ways to assess value.
• AI washing: Some companies may exaggerate or misrepresent the extent of artificial intelligence integration in their products or services in what's known as "AI washing." Wayne and Bob advocate for transparency in AI-related claims. "You can't call every product an AI product, just because it does two calculations in a row."
• Strategic vendor partnerships: Wayne suggests moving away from transactional arrangements toward cultivating trust with a select few partners. It's critical to consider the vendor's business process, integrity, and forward-thinking approach when choosing partners. He urges CIOs to invest time in building partnerships, participating in user councils, and attending events that bring customers and vendors together.

The Big Quote: "The message to the CIO is, when you sign a SaaS contract, be very careful about what happens at the end of that contract. The best time to figure out what to do at the end of the contract is at the beginning, not as you get to the end."

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Episode 36 | Guarding Against IT Amnesia

The Big Themes:

• IT amnesia: Bonnie introduces the concept of IT amnesia syndrome in tech projects, where post-success, lack of documentation leads to project failures. A culture of documentation is necessary to counter challenges.
• Employee turnover: Documentation ensures knowledge continuity as team members move on post-project. Succession plans address turnover, facilitating transitions and preserving project insights. By ensuring a structured handover process, organizations can safeguard against knowledge loss and maintain continuity.
• Role of GenAI: GenAI can help with documentation since many individuals face challenges in writing. Bonnie emphasizes that while AI doesn't replace the need for accuracy checks, it significantly speeds up the documentation process. Generative AI helps people make their notes on processes grammatically correct and easily digestible documents, making documentation more efficient.

The Big Quote: "Documentation and a culture of documentation: Making sure that everybody knows that it's not good enough to check a box. You have to check the box and have the documentation to ensure that process will happen in the future as well."

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Episode 31 | Current Affairs Unmasked

Note: this episode contains explicit language.

The Big Themes

• DEI and MLK: Christopher surveys the contemporary DEI landscape, expressing concerns about its focus on groupism rather than individual merit, citing instances of what he perceives as discrimination against certain groups. He draws a sharp contrast between the principles of DEI and the inclusive dream articulated by Martin Luther King, Jr.
• The Middle East: Hypocrisy within academia regarding the Middle East is highlighted, with a close look at Claudine Gay's recent appearance before Congress. The Middle East discussion serves as a microcosm reflecting broader concerns about ideological extremism, free speech, and the need for nuanced conversations.
• OpenAI Turmoil: Christopher expresses skepticism and concern about the decision-makers at OpenAI, characterizing them as "DEI elitists" with questionable values and ethics. Despite acknowledging the need for government regulation, oversight, and transparency in AI development, he opposes the notion of elitist individuals having undue influence. The board's embrace of effective altruism is tied to DEI.

The Big Quote: "Here's the prediction: In 2024, we will see what is required now, which is there will be the emergence of courageous CEOs who say, we are suspending all DEI efforts in our company. And we're going to do a review of them. And what we're going to try to re-align around is equality for all . . ."

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Episode 47 | 2024 CIO Wisdom

The Big Themes:

• Multi-cloud strategies: Wayne advises against traditional server purchases, except for edge computing. He advocates for a multi-cloud approach, which aligns with the diverse landscape of software-as-a-service (SaaS) applications. He encourages CIOs to optimize cloud choices for different workloads. In the multi-cloud environment, vendors should be scrutinized based on security, data protection, and governance standards.
• AI and cybersecurity: There's a perpetual arms race in cybersecurity. Wayne believes that AI, particularly large language models, introduces a significant shift, enabling adversaries to deploy smarter attack vectors. He urges increases in cybersecurity budgets, predicting that by 2024 or 2025, defensive AI implementations could tip the balance in favor of defenders.
• Tactical vs. strategic CIO: Wayne introduces the "four Ps" methodology (prioritize, patch, polish, perfect) as a framework for CIOs to manage daily challenges while envisioning future improvements. There's a need for CIOs to balance tactical problem-solving with strategic vision. A successful CIO must navigate both aspects: be able to effectively address immediate issues as well as articulate a compelling vision for the future to stakeholders.

The Big Quote: "And so the message to CIOs is, if you're buying servers, other than for edge computing, you're investing poorly in 2024. I'm that blunt about it. My goal is never to buy another server in my life unless it's an edge application."

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What's Next for Industries

The Big Themes:

• Industry convergence: Industry convergence is the reshaping of traditional value chains as well as business processes and models as different sectors integrate horizontally and vertically, creating new markets and revenue streams. SAP plays a pivotal role in industry convergence by helping businesses across 25 industries navigate and capitalize on the changing landscape.
• Integrated artificial intelligence (AI), better automation: From predictive planning in retail to enhancing safety in manufacturing, AI will help automate critical functions, improving efficiency. Automation must move beyond compression and focus on transforming processes.
• Data ecosystems: Data ecosystems take center stage. In the future, ERP will evolve into a networked system leveraging diverse data ecosystems and semantics. The emphasis is on managing these ecosystems collaboratively across industries, for seamless access and exchange of data.

The Big Quote: "The industries customers operate in define their core business. So their core business really has an industry spin. But with industry convergence now coming to the forefront,[it's] reshaping nearly every industry. It is also blurring a little bit the traditional value chains that we are used to . . . It's the integration of technologies, business processes, and also business models."

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SAP's CX Transformation

The Big Themes:

• SAP's intelligent CX: SAP intelligent CX aims to move away from the traditional front-office and back-office distinctions and create a unified system that optimizes every touchpoint in the customer journey. It involves collecting and leveraging operational data, adopting a composable and hybrid strategy, emphasizing personalization, and infusing AI at every step to enhance customer interactions and loyalty.
• Holiday trends: Holiday trends reveal an uptick in average order value, while consumer behavior shows a shift from an average of nine purchases to eight this year. Shoppers are expected to streamline their holiday purchases to around four to five stores, focusing on higher-value products with a bit more emphasis on savings. Timely relevance, personalization, and smooth interactions are crucial, as consumers are quick to disengage if the shopping experience feels awkward or lacks relevance.
• Automotive and utilities: In the automotive sector, there is a significant shift from traditional dealership models to a direct-to-consumer approach, transforming cars into "stores on four wheels." Concurrently, within the utilities industry, collaborations with entities like Duke Energy exemplify the use of real-time data to gain insights into energy consumption patterns. It focuses on 24/7 availability, personalized services, and proactive communication.

The Big Quote: "I would highly recommend to any customer experience leader on the planet to really once try to pick up the phone and get something arranged. It should be the life lesson for all of them, whether you're utilities or in automotive, retail, or CPG [consumer packaged goods]."

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Episode 35 | Customer Connections

The Big Themes

• Appointment hygiene: Maintain good appointment hygiene by scheduling appointments promptly, respecting allotted time, and communicating clearly. Avoid delays and make sure appointments align with the customer's expectations. Even if work goes smoothly or superbly, it can be difficult for a client to look past problems with scheduling and communication.
• Considerate conversations: While having year-end meetings with customers, show a deep understanding of the customer by personalizing conversations. Ask strategic questions to uncover client goals and achievements and avoid direct discussions about commissions or financial incentives tied to contract renewals. Finally, end meetings on a positive note.
• Utilize artificial intelligence (AI) Tools: Leverage AI tools, such as transcription services, to automatically summarize meetings and conversations. This ensures that key points are documented and can be referenced for follow-up actions.

The Big Quote: "Do your homework ahead of time, bring things to the table that [customers] didn't necessarily tell you about so you can show that, 'Hey, I care about you, because I want to do more. I come to the table with more than just what you've told me.' I think that's a really big thing. People love to hear their name."

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The Big Themes

• Migration from legacy: AlloyDB is for enterprises looking to modernize their data states, particularly those transitioning from legacy databases to open-source offerings like PostgreSQL. Its role as "Postgres on steroids" addresses the challenges faced during this migration and ensures compatibility, scale, and performance.
• Generative artificial intelligence (GenAI) alignment: Andi emphasizes that successful businesses will not only focus on developing GenAI skills but also on effectively managing their data states. The combination of data and AI technologies is pivotal for delivering highly differentiated, immersive customer experiences and therefore for delivering broader business outcomes.
• Multi-Cloud Flexibility: AlloyDB's ability to operate in multi-cloud and hybrid environments, including Azure, AWS, on-premises, or at the edge, demonstrates its flexibility and acknowledgment of the reality that not all workloads will immediately move to Google Cloud.

The Big Quote: "Everyone's trying to rethink how they increase their differentiation, how they deliver better user experiences, how they can really exploit those technologies . . . The ones that are going to be successful, are not just the ones who build the AI or GenAI skill set, but [who] really have a good hold of their data state. And know how to bring those two worlds together."

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The Big Themes

• Leading the Way to Cloud First: Christian discusses how SAP has become a cloud-first company. The RISE with SAP program, coupled with strategic acquisitions like Signavio, plays an important role in SAP's transformation, offering more than just a technical shift to the cloud but focusing on customer needs and business model transformation.
• AI Insights: SAP's business AI initiatives, including generative AI, will transform the way end-users interact with software, with tools like Joule and automated code generation to make every developer an AI developer. Embedding generative AI into business is a priority for customers, and SAP's position at the nexus of business and technology puts it in a unique position to serve this need.
• Strategic Partnerships: Recognizing the significance of partnerships, SAP collaborates with industry giants like Google, Microsoft, and AWS to enhance its offerings, demonstrating a shift towards a more collaborative approach for mutual benefits. Partners are an integral part of SAP's portfolio, and they are enhancing their end value by a significant amount because no one can develop everything on their own.

The Big Quote: "I can still remember 23 years back, some people I met at Morton Street in New York, right at our office. They are still colleagues, some are even friends. They are helping me still today, you know, from New York. Even as a CEO, the network is so important. You need people, to have the people on your side. Because even as a CEO, you cannot run the company alone."

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