SAP’s acquisition of WalkMe, completed on the 12th September 2024, resonates with a broader industry trend to focus on user-centricity. WalkMe’s Digital Adoption Platform is a decent fit for SAP’s complex software ecosystem and this acquisition positions SAP amongst the frontrunners in the digital adoption space, reflecting a growing realization that the value of software doesn’t lie solely in the richness of features but in its usability and accessibility.
Businesses using long-established ERP systems are often confronted with vast enterprises that require significant training and onboarding. WalkMe’s digital adoption platform addresses this challenge by providing in-app guidance, walkthroughs and support, making the systems more intuitive and accessible for users. This can lead to faster adoption, reduced training costs and ultimately, greater value realization from their SAP investments.
“By acquiring WalkMe, we are doubling down on the support we provide our end users, helping them to quickly adopt new solutions and features to get the maximum value out of their IT investments,” said SAP CEO Christian Klein.
Several factors contribute to this emerging trend:
- The rise of the “citizen developer”: Businesses increasingly rely on non-technical users to utilize, adapt and even develop enterprise software, thereby creating a demand for intuitive interfaces and simplified onboarding. Newer employees foraying into older legacy systems are certainly a case in point.
- The cloud migration boom: Cloud applications, while offering flexibility, come with their own set of adoption challenges. Digital adoption tools play a crucial role in bridging the gap between users and cloud-based solutions. Talking of the gap between the rate of introduction of technology and the rate of productive adoption, Dan Adika, co-founder of WalkMe said in June 2024 that “As companies embrace Generative AI (GenAI) capabilities, this problem will be amplified tenfold. AI copilots hold immense potential to enhance productivity and streamline workflows. But only if they are used every day, by everyone in the organization. Unless we close the digital adoption gap, the reality of AI won’t live up to the promise.” Indeed, looking at WalkMe’s branding, the company is now marketed as an AI copilot when previously it hadn’t been. Meanwhile SAP already offers its customers business context-aware co-pilot Joule and Ask Me features. The addition of WalkMe reflects SAP’s commitment to its stated mission of offering its customers an AI-enabled future.
- The need for continuous learning and upskilling: Rapid technological advancements necessitate ongoing user training and support. Digital adoption platforms provide a dynamic and scalable solution to this challenge.
This acquisition marks a significant step towards a future where enterprise software is not only powerful but also genuinely user-friendly. This investment in user experience technology will not only benefit SAP users but also set a precedent for the broader enterprise software industry.
While we have seen other software giants like Salesforce and Oracle ramp up their own in-house user experience and digital adoption solutions, the Tech Mahindra-Whatfix alliance is perhaps the only example that preceded the SAP-WalkMe tie-up. Expect to see more strategic acquisitions and investments in digital adoption tools as companies strive to empower their users and unlock the full potential of their technology.
Additional reporting by Giacomo Lee.
