The new product for small-to-midsize businesses, SAP Business ByDesign,
has sparked much heated debate. It has drawn criticism, at times it's even been dubbed a flop. Some projects look like they may never get off the ground. But the public censure doesn't do the product justice. The solution is far better than its reputation would have you think.

Let's be clear on one thing: SAP Business ByDesign (ByD) promises substantial progress in the SAP world as we've known it – whether as compared to R/3, ERP or Business Suite. SAP has succeeded in developing a totally new kind of software. It's fully integrated and based on state-of-the-art technology. Having separate systems for Customer Relationship Management (CRM), Supplier Relationship Management (SRM) or Supply Chain Management (SCM) will soon be a thing of the past. The solution is chock full of technical features users have long been waiting for. For one, it fills the need for easier customization. For another, it's less complex than other SAP solutions. And it's more intuitive and simpler to implement. In short, ByD delivers end-to-end configuration in accordance with real-world business needs.

Development Takes Time

The new ByD approach is both good and right, even if the software still lacks some key features. But SAP is pressing ahead with its development, both in terms of content and as a business proposition. Version 2.0 will be put through its paces by pilot users this summer.

Additionally, the solution has not yet proved it can provide a rapid return on investment. SAP itself has admitted that it has yet to bring TCO (total cost of ownership) down to an acceptable level. Naturally, this would be in the company's own best interest, since SAP bears the full costs of operation for the on-demand solution. Also, they are working hard to make it easier to extend and integrate ByD. Here, as well, they want to fully utilize the capabilities of the service-oriented architecture. And the business model could be improved; SAP can only succeed if the partners involved in the sales and consulting process also profit.

But we should see things in perspective; these are just growing pains - unpleasant but unavoidable with innovations. And growing pains in a child are a sign of development; it doesn't mean it won't grow up to become really big, something really special.

I'd even go a step further: we should not just hope that development continues, and within the anticipated time frame; we should insist on it. ByD solves or will solve a host of problems, meeting requirements that past generations of software have failed to completely resolve. It's software that small and midsize organizations in particular stand to benefit from, as it makes advanced business functions available at low cost.

Better Solutions

SAP's original strength was its ability to create software that helped companies do business more effectively. It would be the best for all stakeholders if SAP were to re-embrace this principle. It would also be good for SAP's image. After all, talking publicly, and all too often, about your operating margin is not great PR. Of course SAP needs to keep a close eye on its operating margin. But it also needs to remain focused on the operating margins of its customers, users and partners. Let's face it, everyone wants state-of-the-art software that gives them greater visibility into their business situation. This would have benefits all around, for customers, users, consultants, partners, and SAP. So we should all be in favor of the timely market roll-out of a proven, easy-to-use and affordable enterprise software solution.

A Great Future

Perhaps SAP may even consider releasing ByD for major corporations, rather than just small and midsize players. This would be particularly appealing in combination with Business Suite. As business and IT experts, we believe this would lead to new and better solutions. And the answer to our question would be an unreserved "thumbs up."