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Is SAP missing the Public Sector Opportunity?


For some time now SAP public sector implementations in US are on the upswing. SAP has made significant inroads in the government sector after conquering the Fortune 1000 space. But if you see the state of “IT” at all level of our government, or if you monitor the RFP coming from various government agencies, you have to wonder: Is SAP missing the public sector opportunity?

Public Sector Need

SAP’s industry solution for public sector (IS-PS) does a good job for fulfilling the need for back office fiscal accounting software needs of government agencies. SAP PBF (Public Budget formulation), PSCD (Public sector collections and disbursements) and Grants Management fill niche requirements of some groups in the government agency. Back in the 1980s and 1990s SAP became popular by providing an integrated application for most of the business processes for large businesses. The public sector needs the same level of attention.

Today Federal agencies, State governments, City and County governments need a one stop shop to help them run better. The software needs to provide efficient integrated front office and back office functions, citizen services and government to government transactions, tax collection to driver license issuance, preventing fraud to user friendly online services. If the software solution mapped all functions of the government, combined with a clearly defined implementation process, it will make our governments more efficient, tax dollars more valuable and benefit the society at large. Today government agencies are procuring different solutions for each department, each with its own technology stack and implementation requirements. Some states are trying to consolidate and implement enterprise solutions, but they are having to buy technology and build integrated solutions. The IT workforce in the government has a much harder job than their counterparts in the private sector.

Opportunity for SAP and Partners

SAP has been innovating at hyper speed and adding new technologies to their arsenal by acquisition and research. Enterprise SOA Netweaver platform, flexible and mature CRM solution, state of the art market leading SAP BW and Business Objects BI solution, and portal product are only a few of the many software components that make SAP an ideal organization to deliver SAP Government suite.

Combined with some key partners, SAP can quickly and easily deliver the next generation solution to streamline our governments. All the technology components exist. Business processes are complicated but easily defined and documented. Governments processes haven’t changed for a long time now. We need to compose the pieces into end to end integrated processes. All these bundled together in a single licensed package that includes public sector accounting, CRM, PSCD, PBF, BW and Business Objects BI delivered on the portal. Combined with GIS capabilities from one of SAP partners would really make it proposition that no government can refuse.

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