Inside Insights: A Look Back at SAP SAPPHIRE 2024 with Barry Sjostedt and Julea Ferrera

In this latest episode, Mustansir Saifuddin is joined by Barry Sjostedt and Julea Ferrera to take a look back at what has transpired since SAP SAPPHIRE 2024. Was it all hype or was the conference content applicable to clients and partners like them? Listen in for an engaging conversation on what still resonates months later and suggestions for organizations on how to navigate the SAP ecosystem and leverage conferences like SAP SAPPHIRE.

Julea Ferrera is the Founder of J. Ferrara Consulting Solutions, Founding Director of Techqueria x MKE and is on the America’s SAP User Group WI Board of Directors. She has worked in Business Transformation as a Technofunctional consultant in a variety of different companies globally throughout the years promoting lean process and operation excellence through community impact.

Barry Sjostedt is a Business Operations Consultant specializing in Finance and Organizational Excellence, having collaborated with numerous global organizations to drive lean processes and optimization through innovative technology solutions. His expertise spans various business areas, uniting teams for enhanced collaboration and future success.

LinkedIn:

https://www.linkedin.com/in/barrysjostedt

https://www.linkedin.com/in/juleaferrera

https://www.linkedin.com/showcase/midwest-tech-week/

https://www.linkedin.com/in/asug

https://www.linkedin.com/company/techqueria-x-mke

https://www.linkedin.com/company/isolutionpartners

https://www.linkedin.com/in/mustansirsaifuddin

X : @mmsaifuddin

IG:@asug365 @midwesttechweek

Learn more at www.isolutionpartners.com

 

Episode Transcript:

[00:00:00] Mustansir Saifuddin: Welcome to Tech Driven Business brought to you by Innovative Solution Partners. Now that several months have passed since Sapphire 2024, I invited Barry Sjostedt and Julea Ferrera to share their insights on the post Sapphire landscape, including the role of AI and best strategies for navigating the S4 journey.

[00:00:26] Listen in for the customer and service provider viewpoints to see how your team can stay ahead in the ever evolving SAP ecosystem.

[00:00:38] Welcome you both. How are you?

[00:00:40] Julea Ferrara: Doing pretty good.

[00:00:43] Thank you for having us.

[00:00:45] Barry Sjostedt: Yeah. Good seeing you both again.

[00:00:48] Mustansir Saifuddin: I know we were all at Sapphire back in June and it was a great event and I thought, Coming out of the event I wanted to take this opportunity to talk about [00:01:00] the experience and the reality. You know, that's what I wanted to cover in this show because I think it's always good to look back and see where we have come and where we are heading in the future.

[00:01:12] There are a few observations that I would like to share with you both and then like to open it up for your take on. How have you seen things unfold over the past couple of months and where do you see the direction in the future? So I know that the Sapphire event itself this year was full of learning and networking and it was great.

[00:01:33] And it was filled with opportunities as well as it was a bit of an overload of information as you can tell by the amount of information being shared and a lot of different things that were happening during the conference. Now, if I look back, it is in our rearview mirror. I think this is time that we talk about and revisit what we got out of Sapphire and see what resonates with different [00:02:00] people.

[00:02:01] Just like you, who touch the SAP ecosystem. Coming back to some of the content. Sapphire, we focused on Gen AI. That was like the the theme that was going on in different sessions, different conversations, and on the show floor, in the presentations, and those networking events.

[00:02:20] Gen AI, Juul, You know, SAP talked about some key partnerships with their hyperscalers like AWS, Google, NVIDIA, Microsoft. I mean, you name it, right? We also talked about CleanCore, what that means, and a lot more. So, I know there was a lot of things were covered. And based on my experience, I would say some folks even thought that it was a lot of hype.

[00:02:47] So, that brings me to you both, and, this conversation today. And I'd like to start with what did you get out of the show and where do you think we are heading? So, let me start with you, Julea. You know, when you left Sapphire, [00:03:00] what was top of your mind? And what was your first action step after coming out of the conference?

[00:03:06] Julea Ferrara: I first went to honestly, LinkedIn, and I'm a part of BTP a lot of group sessions shared groups on there to kind of understand, like, different polls. A lot of people put a lot of different polls out there to understand the five different pillars with BTP and where we're at, and 100 percent across the board was on AI.

[00:03:28] These last few weeks, since Sapphire, it's been again, a big thing around the AI aspect. I think, yes, there's a lot of hype around it, which is exciting. But as much as I love A. I. I still believe we have to tell the A. I. what to do. So it's what I see missing is people having those general conversations in the S.

[00:03:50] A. P. space of how do we do that? What do we work with to do that? A lot of amazing tools. The problem is I don't think people understand like where to [00:04:00] go to get everything set up. So , I realized the importance of all working with all these partners and vendors to get, to understand and having really the ASUG network, the ASUG pre conference conversations were great to help you get

[00:04:15] those things set up for your data processes for the AI to work. Barry, what did you think?

[00:04:23] Barry Sjostedt: Yeah, I mean, it was a lot. I think, you know, going in there from a focus standpoint, you kind of almost had to know what you were looking for. My feeling is cloud is really the big initiative. I was trying to learn a little bit more about their positioning, you know, what they're really truly trying to accomplish.

[00:04:43] And, you know, at the end of the day is my strategy aligned with theirs? My view of it is slightly different from yours, from, you know, you're a customer, whereas I'm trying to assist the customer. So of course I had that slightly different view. AI, [00:05:00] I think. It's AI is more of in its infancy.

[00:05:05] It's here. It's evolving. It's quick and it's going to happen faster. So what they laid out is Kind of more as this is what's to come but we know having worked in the space for quite some time. It's It's really not super efficient today, and I agree with you. Where are the resources going to come from where?

[00:05:28] They're already trying to look for resources for people to transition and still transition over from ECC to S4. So from my perspective, we're looking, you know, at where SAP is going, and more importantly, where are organizations going? What's most important to them? Who's going to what sessions?

[00:05:51] As are they in the same sessions I'm in and who's in the sessions that are in, let's say cloud facing or cloud alignments, you know, and what's more [00:06:00] important to them. Because what's important to you is different than what's important to another organization. And let's say, you know, not all Molson Coors, but let's say something in a you know, a small manufacturer.

[00:06:17] So there's a big difference there, and I think it's layered.

[00:06:21]

[00:06:21] Julea Ferrara: Yeah, you do have a great point. The one thing I have learned by going to Sapphire over these years is everybody tends to take their IT department. And you have a little bit more understanding of, like you said, Barry, Hey, we're more concerned about the cloud aspect.

[00:06:40] When companies, customers send their people there, they need to send more of their business teams out there, business process teams, and that's not really happening. So the biggest encouragement I offer is you need to have more of your business functioning teams

[00:06:56] to attend because they hear, they hear all these [00:07:00] hype words and around AI, they're ready to go. They don't realize that we have to still do all this work. Ahead of time. And there that's the gap that I see is people don't understand, okay, you have this available. This tool can do all this stuff for us. And I see a lot of different industries keep buying the tools and tools and tools, but they don't understand all the data and all the business processing that needs to be done with that for that automation to work.

[00:07:30] So. My biggest takeaway for any customer and send more business functioning groups to those conversations. Sapphire being that.

[00:07:40] Barry Sjostedt: That's such a great point. It really is, working with all different aspects of businesses. And this is not just kind of in this circumstances, but just, you know, from years of experience.

[00:07:52] There is such a vast difference between the person who's in IT, who gets the complete and total understanding of, how it works, [00:08:00] and how I'm gonna put it into your system, to the individual actually using it, and is it functionally sound for their day to day. And it's almost, you know, sometimes I feel that the representatives that they send to some of the shows, it becomes that telephone game, when they get back to the organization and say, "I saw the coolest thing ever." And then the person sitting at the desk saying, yeah, but only one aspect really kind of helps me.

[00:08:27] It's great. But overall for the organization, does it fit the need for where we're going not just daily, but in the future? How are we going to accomplish that? So, yeah, I mean, that's a great point. I enjoy meeting several different people from several different areas. And I think that's kind of where I think I really like more from an ASUG point of view.

[00:08:50] When you start to get a little bit more granular in some of the smaller shows, you get to meet the users and understand where their difficulties is in that chain of how it can [00:09:00] go up and it can benefit the organization as a whole and not just one instance.

[00:09:06] Mustansir Saifuddin: You both made a great points on this particular conversation.

[00:09:11] One thing that I've seen, and this is what is going to persist going forward, especially when we are transitioning from the current environment customers are in, either you take your ECC environment or on prem or whatever the current situation is from their ERP to their data and analytics to any of the technology that they're currently using in their organization is having that path available to them.

[00:09:38] You know, having that advisory kind of role, someone who is capable of understanding their current landscape and then walking them through the path to the new technology, to the generative AI type of discussions because the path has to be clear. Because you're not jumping to the [00:10:00] new technology, you know, in the next move.

[00:10:01] You're going through those steps to make sure that you are getting to the destination in a way that is helping and benefiting the business, right? In the end of the day, a customer is looking at ways to make sure their systems are running flawlessly. You know, their path to technology and future trends is aligned with what their business strategy is.

[00:10:24] That brings me to my next question So Sapphire is in the back view mirror now. A couple of months into it and the dust has kind of settled down How has your outlook changed since you left Sapphire? Barry, I would like to start with you this time.

[00:10:41] Barry Sjostedt: For me, my outlook hasn't changed a lot . Having, you know, done a little bit of research prior to going to Sapphire and what we were looking to accomplish.

[00:10:54] It's really kind of the same thing. My follow up from the show and the outlook [00:11:00] is, I'm a little bit more focused on some of the, the technology, obviously cloud was being one of them for us. The onset of BTP and trying to roll out the different portions of what they're, you know, trying to make it bigger and better, but really it's much of the same.

[00:11:20] How am I going to be able to help organizations and align with their strategies? And really try to help them to make these moves. I mean, we, you know, we've made mention, you know of some of the the people having to move over, whether it's just to S4 or being a part of the Rise journey, or Hana cloud for that matter, How can I help be a value and a benefit for the organizations to make these moves? I always turn back to my past experience of just working in operations. Operations is costly for [00:12:00] groups. It's a cost. How do you defray that cost? How do you make that cost as small as possible to help the profitability in the future?

[00:12:08] How can I make, that process more lean and a more efficient, saving more money for them to make this upgrade. Because these upgrades are costly. And that's what we see a lot of is, our focus is solely on this. And it's like, yeah, however, if you have terrible process today here, you can upgrade, but you've just upgraded to another terrible process.

[00:12:36] And you just paid a lot more money to do a terrible process. So again, it's getting that mindset. So for me, not a lot has changed in that aspect. I think it's just more of understanding what the messaging is and also aligning with the organizations to make sure they understand what the messaging [00:13:00] is and is it being, is it being relayed from that show to Julea, just like you said, to your business people, to your end users.

[00:13:10] If I'm at a slightly larger organization and I'm going to send people down to Sapphire, I'm going to have that mindset of a divide and conquer. And I am going to pick, do you know what I mean? Three groups. I'm going to have an IT, I'm going to have a finance, I'm going to have an end user group.

[00:13:28] Do you know what I mean? And I'm going to say this is what I would like to find out. And then All three groups collaborate when they get back. What did you find out? What did you learn? And then once you do that, I think you're really on the path to making the best decision moving forward.

[00:13:45] Do we do this? And in what order do we do this? What is most financially advantageous to the group? So we're prepared not only today, but we're prepared for tomorrow when we have to make yet another jump or do we do [00:14:00] it incrementally? That's smart.

[00:14:02] Mustansir Saifuddin: That makes sense.

[00:14:03] Julea, what's your take on it? I mean, have you seen any change in your perspective after this couple of months?

[00:14:11]

[00:14:11] Julea Ferrara: Generally, you don't. Again, it's all hype. It goes back to more the cloud perspective and automating. Different aspects and going to the AI route because again not everybody understands that you're putting additional costs onto the problem you already have of upgrading and everybody's too worried about the maintenance side of things.

[00:14:33] Instead of fixing the issue right now, everybody's more focused on the tool . The business sees, Hey, you have all these awesome tools. They push and the business gets what the business wants. They have the money. They can say , Hey, I want these tools. And then you have these complicated webs.

[00:14:50] I liked the point that you said, bring your finance person, bring your business person. People forget, is bring your data people . Your data people need to be a [00:15:00] part of these conversations. That is one group I do not see a lot of, data people. Yeah, maybe on the analytics side, but you need your master data governance team there.

[00:15:10] I think security is another one.

[00:15:13] Mustansir Saifuddin: Thank you for sharing your thoughts on that. This is very good to hear the two perspectives. And that was the whole idea of this conversation was to get what you have seen from your point of view, and then how it has progressed since that event happened.

[00:15:29] So from your purview, where do you see SAP customers heading when it really comes to this S4 journey we all talking about and a 2027 deadline from SAP?

[00:15:39] Julea, what's your take on it? I mean, this is coming up quickly.

[00:15:44] Julea Ferrara: Yeah. I see a lot of people scrambling. Again going back, they just, what do we do? Are we taking all the initial steps that we need to, all the checks and balances ahead of time? It kind of goes back to what [00:16:00] I'm previously referencing is people are scrambling.

[00:16:03] They're focusing on the tool to get it done and not really understanding that they need to be more involved. And this is where I plug in the ASUG: ASUG plug is even part of your S. A. P. membership is the customer excellence team that you can tap into to help you. And that's where my recommendation seeing those pre conferences, I was like: if you want to work with bigger, like Deloitte and Accenture and EY, to help navigate these things, you still need small providers to come in, to really understand your landscape a little bit more, to help guide those teams.

[00:16:41] Those are the disconnects I'm seeing, and I think if you get the mapping and all that stuff done ahead of time, you're in, you're aware of what maintenance fees and stuff. People are there to guide you through all that. And not enough customers know about those benefits. [00:17:00] As being a part of an ASUG membership where you're amongst a group of all these subject matter experts who can guide you, you know, it's, it's full of customers, partners, and vendors, not everybody realizes that.

[00:17:13] I mean, I'm still. Been trying to get that out as a champion myself.

[00:17:18] Mustansir Saifuddin: That is great.

[00:17:20] Barry Sjostedt: Well, pressure's on, isn't it? Right? I mean, that clock has been ticking. There's been that push and I think that some of the early adopters obviously had some pains and let's also remember COVID was slammed right in the middle of this.

[00:17:38] So I know that they went from, and correct me if I'm wrong, I think it was 2025 was the original date. I think they're two years out considering the COVID and I don't know if that's enough. The last time that I checked, I want to say that there were still 68 percent of [00:18:00] organizations still on ECC.

[00:18:01] I could be wrong on that number you know, obviously, but that's quite a bit. So now we're going to have this mad dash in two years. My concern becomes resources. These organizations if they're not adopting earlier and stuff, are they doing the right thing? Piggybacking off what you said Julea too is you know I couldn't stress enough of using, you know organizations like the ASUGs and the education. And more importantly the peer to peer contacts and I can't tell you how many people I have talked to here in the new england chapter. Use the people who have already moved over.

[00:18:39] What approach, what would they do different? If they had to do it over again, spend time on this, clean up this, don't do this. And there I agree again, Julea, it's just that I think that the smarter organizations are taking a step back, they're taking a look and doing just kind [00:19:00] of what I said before.

[00:19:02] Thanks. What we have internally. Clean up. I mean the clean core concept is really kind of what I was talking about a little bit more about being lean. let's clean up what we have now clean up some dead data clean up some stuff that we have to do so when you actually make that transition You're not bringing over junk.

[00:19:23] You're actually starting and think about the cost and I mean we promote that a lot here. As we're doing our projects, is that working with a documentation, organization, and optimization that we do is if we can assist you to clean up that whole entire area within your documentation, you're not bringing that stuff over.

[00:19:46] I mean, I know we've saved organizations hundreds of thousands of dollars in just migrations and think about that. That can go to what you're moving over. This is just one small piece, one small [00:20:00] area of your SAP ecosystem. Think about where else you can clean up. So again, I think that the smarter organizations are really taking a harder look at that move and what makes sense.

[00:20:11] And does it make sense if I'm going to do just do S4? Do I do S4 cloud? Do I do it all at once? And how do I do that and how do I go about it? So. Yeah. I think really organization is the key and communication is really big, internally and externally, and who works best for your organization.

[00:20:33] You have some of these larger groups, they might be more suited to work with you. But there are a lot of smaller groups that need kind of more boutique, more hand holding, more understanding, and more experience in that area. Someone working on a multi billion dollar corporation, might not be the best fit for a smaller organization.

[00:20:58] You know what I mean? That's revenue under a [00:21:00] hundred million. And there are all different levels for that. I think it's going to be interesting to see over the next couple years. I'm starting to see a smaller shift kind of on my end from an interest standpoint of I think that people are learning from the smaller groups and that peer to peer contact. And I actually couldn't encourage that enough from my end. And Julea and Mustansir and we're being part of these organizations is where you kind of get the most benefit.

[00:21:25] Talking to each other, get an understanding. And it's amazing how willing people are to help each other in this capacity. I really enjoy that part of the, the group of the organization.

[00:21:37] Mustansir Saifuddin: Yeah, totally agree.

[00:21:39] Julea Ferrara: I've seen different industries who rely on SAP education to only be in the IT department. You talk to business departments and they're like they solely rely on IT creating the documentation, putting everything together, and really not going [00:22:00] in to do transactional work or understand what they're doing versus they're relying on the reports that are coming out. And my biggest takeaway to customers, the ones that are successful is you have SAP education throughout your whole organization.

[00:22:18] Not just your IT department. So if you're doing integrated business planning, it needs to be a part of the whole integrated business planning teams conversation to, like you said, Barry, going back to that documentation, cleaning up the data, cleaning up the process to then move it all over. The hard part is people don't know how to educate others.

[00:22:44] And that's why we have great groups like ASUG. I said, you don't have to leave the company to learn other best practices. So focus on educating your people and having that organizational change management process set there for [00:23:00] everyone.

[00:23:00] Mustansir Saifuddin: I think that's a great takeaway, I think, from both of you, and you touched upon it, right?

[00:23:03] I mean, it's all about peer to peer education, just learning and utilizing the resources available to you to be more prepared before you get on the journey. And the journey is going to be challenging for folks who have not gone through all the work that you folks mentioned about doing the homework, cleaning up, getting your house in order.

[00:23:24] All those things are important for you to be successful in this journey, right? And I know we covered a lot today. What would be one key takeaway that you would both want our listeners to leave with? Julea, please start from your perspective.

[00:23:38] Julea Ferrara: I know a lot of people are going in the AI route and we're talking data, process and then, big key takeaway is utilize the networks that you have, to come together, share. When it comes to the A. I. aspect of it all: to have the greatest prompting you can. Describe your [00:24:00] scenarios as descriptive as possible when you are building out the AI for these tools. If you leave things very blank, if you leave things very from the box add your operations to that, consider your operational changes, consider the process, and then consider what the software does.

[00:24:22] Cause you can customize to that and utilize the SAP excellence center, utilize ASUG. Get some smart, smaller partners in to understand your landscape. If you're a big company to help get those SOWs going in the right direction that work for you and you're not just putting money out the door and out the door and out the door. And you're creating more webs of Disarray, focus on those avenues and I think you'll do, you know, do do really well.

[00:24:54] Mustansir Saifuddin: Great. Barry, what's your take?

[00:24:57] Barry Sjostedt: I can't stress enough the [00:25:00] peer to peer, partner, collaboration, communication network. I think that's the most helpful. People like to talk about their accomplishments. People like to talk about what works, their successes and how it works. The more you get to know people and the more you kind of get yourself out there and you get more in these groups, you know, they're not afraid to talk about, yeah, we tried this and it didn't work.

[00:25:29] And they explain why. Then that relationship continues. And between reading and trying to collaborate on linkedin, which I try to use a fair amount. I try to share as much as I can so that people can learn more about their space . Whether it's the people that I follow or the people that I am connected with I think there's a lot of value in there. But again, it's that research And I agree with you Julea.

[00:25:52] It's just vetting out What is best for your organization? What I've seen a lot of is that you have organizations that [00:26:00] come in and say, Oh, don't worry. We have that. We have that solution for you. That's in our portfolio. Well, great.

[00:26:09] Does it work? Do you know what I mean? Like, you know, it's great that you have it in your portfolio, but is it a right fit for us today? At the end of the day, if you actually have something in mind and you have a project in mind, take a step back and say," Hey what are the best ones out there right now?"

[00:26:26] And let's look at three, four, five and find the best fit with your organization. You know what I mean? We're a good fit for you as you are for us because that means we're setting you up for success.

[00:26:39] We're a valued partner and we're going to move forward with you. And I think oftentimes it gets lost because people are trying to sell. People are trying to put stuff in there. It's all great if I put something in your system, But if a year or two later, it doesn't work,

[00:26:54] it's bad. It's bad for both of us. Bad for business. Bad for reputation. And it doesn't work. That's [00:27:00] no good. So the combination of that peer to peer contact and understanding and having a true understanding Of your organization and what fits best for your needs for your groups and that comes with communication and collaboration.

[00:27:13] Julea Ferrara: I say there's a lot of as for supply chain groups. There's a lot around the finance groups. There's the latest and greatest, and that's where I'm getting a lot of my information from. So I suggest customers do the same as well. Go in those groups and learn, like you said, peer to peer.

[00:27:30] Barry Sjostedt: Well, you know, and that's funny. When you mention the latest and greatest here, it's great, right? You take a look at it, and is it a good fit for you today, right? Maybe not. But I think the key is, is that by looking at the different organizations, who is set up the best for you to make that move.

[00:27:45] So if you are in fact on ECC today and you want to fix it, is that next step for you S4 and will that solution or that particular idea move over to S4 in an easy [00:28:00] transition.. Or is it more of a, well, since you're going on this version, the next version is going to be twice as expensive to make a move.

[00:28:08] And I see that a lot too. Whereas, you know, and it's nice part about stuff that we will do here is that it doesn't matter what version you are on and it's an easy transition. You can just bring everything over once you're ready to move. And I feel that's a true valued partnership. Is that we're, we're looking to move forward with your roadmap and we are aligned with all versionings of SAP.

[00:28:33] There's that nice collaboration, right? We're collaborating with the organization. But we're also just going to be right along with the roadmap. If they're going to move forward, we have the capability of moving forward with you and it's not at an outstanding cost. A better ROI at the end of the day.

[00:28:50] And ultimately that's what you want. You got to look hard at that.

[00:28:53] Julea Ferrara: Yeah. What people don't do is discuss the how together.

[00:28:58] Barry Sjostedt: Right. Yep. [00:29:00] No, that's exactly right.

[00:29:02] Mustansir Saifuddin: I think this is great and great takeaways from both of you and I think that this is where the real value comes in from sharing this kind of format with listeners so they can get, Hey, what is really out there and what should be focusing on in order for me to be successful in my organization and in the future I want to move forward to.

[00:29:24] Thank you again both of you for joining the session and it's been a great conversation. Look forward to talking to you in the future Thank you again for joining us today.

[00:29:34]

[00:29:34] Mustansir Saifuddin: Thanks for listening to Tech Driven Business brought to you by Innovative Solutions Partners. Barry and Julia shared their unique perspectives to give a 360 view of SAP Sapphire. As we heard from both of them, the key to success in navigating the SAP ecosystem lies in collaboration, [00:30:00] communication, and a focus on business processes.

[00:30:03] Don't hesitate to leverage the resources available within the SAP community and seek guidance. from experts when needed. We would love to hear from you. Continue the conversation by connecting with me on LinkedIn or X. Learn more about Innovative Solution Partners and schedule a free consultation by visiting isolutionpartners.com.