Analytics Monetization: Finding Opportunity in Delivering Knowledge in the Cloud
By Terry Penner, Platform and Partner Strategy, SAP Data and Analytics, SAP
The CEO’s agenda often drives a company’s innovation agenda. But no amount of executive research, trend awareness, and vision shaping can replace the insight gained from being close to the process, challenge, or customer issue in question.
At SAP, our partners play a distinct role in exploring a range of unique opportunities, risks, challenges, and improvements specific to individual companies. They empower our customers to take a sensitive assessment of their business areas, then create targeted and specific solutions that connect them to possibilities that may have been otherwise left unseen and ignored.
More importantly, SAP and our partner ecosystem listen to our customers and work together to discover commonalities across our customer base that can be addressed through our technology. Based on our global experience, whenever one business communicates a need, many more customers will likely experience the same or a similar challenge. This observation inspired SAP to leverage partner solutions, processes, and best practices with broad market appeal in our quarterly updates for the SAP Data Warehouse Cloud and SAP Analytics Cloud solutions.
Reaching more customers with the credibility of SAP
SAP Data Warehouse Cloud and SAP Analytics Cloud are part of a more extensive data and analytics cloud content portfolio that runs on a common platform. The entire cloud suite works together on common platform services to let each solution focus on different areas. This setup allows our partners to build content focused on one of seven business functions or 25 industries and offer it to a base of over 400,000 SAP customers across more than 180 countries.
For example, SAP partner NIMBL is working with The Gates Corporation to turn its products into a valuable resource during the aftermarket customer service experience. NIMBL is enabling the manufacturer to adopt IoT technology to transform its line of hydraulic hose crimpers with deep insights into customer use and product performance. By going live with SAP Analytics Cloud and SAP Data Warehouse, Gates can now see where its products are, how they’re being used, and respond based on what’s happening in the field.
When such a transformation outcome is delivered, partners, like NIMBL, are better positioned to establish long-term customer relationships built on trust. SAP Analytics Cloud and SAP Data Warehouse enable this edge by providing predefined content for more than 140 different industry and line-of-business content packages. Each package typically contains data modeling, stories, and visualizations, digital boardroom experiences, and best practices that are ready to help improve a specific part of the customer’s business.
Our customers can deploy these packages for no additional charge, and SAP encourages them to contact the innovating partner to customize the analytics content to meet their unique needs. In fact, approximately 65 of these packages have been developed by partners using SAP and third-party data sources. Customers can browse our catalog or network on SAP App Center, click on the partner content package they want, and import it into the solutions. Users can immediately benefit from the partner content and gain access to partner expertise to get the most value from it.
Extending competitive advantage with monetization
While customers have an extraordinary opportunity to enrich their analytics capabilities to meet their business needs, our partners are rewarded with a scorecard-based monetization model. Our approach leverages a cash conversion cycle supported by publicly available information on the resulting business performance improvement the package delivers, compared to the customer’s status before the implementation and a benchmark of its peers.
Partners are also allowed to improve their monetization scale by using this performance information to explore the root cause for lackluster outcomes, take corrective action, and refine the design to make it available for customer consumption on SAP App Center. They can also create similar content modified for a new business area or industry.
Another avenue to monetization is also available for partners enrolled in the SAP PartnerEdge program. In this case, our partners can quickly scale content development and identify opportunities to showcase it to a global marketplace. This collaboration with SAP allows partners to assess growth potential and follow a path that brings another monetization opportunity, backed by marketing and sales support from SAP.
Once the readiness of the content is certified and available on SAP App Center, SAP trains our sales team on everything from the offering’s features and capabilities to the value proposition and expected outcome. Should a customer choose to engage the partner, the closing sales representative receives 15% of the revenue as an incentive for offering the partner content to the SAP customer.
The partner supports and delivers the subscribed content to the customer and is listed as the merchant of record in the remittance completed in SAP App Center. The partner can then establish a direct relationship with the customer while setting up the content, configuring capabilities, and assigning roles based on deployment requirements.
Creating a profitable path to growth
The success of SAP customers depends on collaboration between technology and go-to-market models that enable our partners to flourish in all economic conditions. And our approach to monetizing embedded, cloud-based analytics content from our partner ecosystem is precisely the collaboration that will open more doors to reach new customers with innovative solutions that solve critical customer needs.
Together, we can create a profitable path to growth for both our businesses.
Interested in learning more? Check out the latest resource on embedded analytics: