SAP and the Walk-ME Acquisition

Background

Ever since business transformation became buzzwords in the technology innovation space, companies in the Big Tech have spent big dollars to acquire businesses that complement their own strengths and add customer value.

The latest in this series is the enterprise software giant SAP who just announced the $1.5 billion acquisition of WalkMe – the digital adoption platform.

The deal, represents a $14-per-share offer to the Israeli company, sits well with two other acquisitions made by SAP in recent years. They paid $1,2 billion for Signavio, a business process automation company and LeanIX that specializes in enterprise architecture management.

Adding to the business transformation management portfolio? The all-cash deal for WalkMe sits well with these earlier acquisitions. “The envisioned combination complements SAP’s Business Transformation Management portfolio around SAP Signavio and SAP LeanIX solutions to help customers on their transformation journeys,” says SAP.

WalkME

Walkme was founded in Israel in 2011 and offered solutions to simplify website navigation via real-time, on-screen guidance. However, since then WalkME shifted its HQ to San Francisco while adding more consumer and enterprise application features to their platform.

They include guides that help users figure out new features or help HR onboard new employees.

WalkME provides balloon overlays and on-screen prompts in order to convert free users into paid ones as they pitch process automation that would have otherwise been a resource-intensive effort.

WalkME also added end-user behaviour insights into its suite to push extra support tools at points where the user could exit the application.

Automation is the key for SAP and AI too

These features were the defining factors that SAP saw while deciding to spend big dollars on WalkMe.

So how do the numbers add-up

WalkME raised around $300 million prior to its 2021 IPO. The company was valued around $600 million a year later but recent its market cap moved between $800 to $900 million.

SAP’s offer came on top of a 25% spike in WalkMe’s stock prices

A significant hike based upon the companies strength (which probably put it on the SAP Acquisition radar).

WalkMe has an AI component

They unveiled an AI-powered copilot that suggests the “best next step for any workflow anywhere” and as a result reported a 4% spike in revenues over the first quarter. Called WalkMeX, the copilot uses its existing contextual awareness technology.

SAP CEO Christian Klein said that with the purchase, SAP is “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.”

WalkMe to enhance SAP Business AI

WalkMe's integration is set to significantly enhance SAP's Business AI offerings in several key ways:

1. Advanced User Guidance and Automation:

- WalkMe's digital adoption platform (DAP) provides advanced guidance and automation features that help users navigate and adopt new technologies seamlessly.

This will complement SAP's existing tools by offering more contextual and AI-driven support, thereby improving user experience and productivity

2. Integration with AI Assistants:?

- WalkMeX, an upcoming copilot from WalkMe, uses contextual awareness and AI to suggest the best next steps for workflows.

This will be integrated with SAP's Joule AI copilot, enhancing AI assistant capabilities and productivity gains for SAP customers

3. Support Across Applications:

- WalkMe's DAP can operate as an overlay on any application, including those from other vendors.

This ensures continuous support and guidance across various software environments, making it easier for users to adopt and utilise different applications effectively.

4. Enhanced E-Learning Features:

- The integration will combine WalkMe's capabilities with the distinctive e-learning features of SAP Enable Now, forming the center of SAP’s people-centric transformation approach.

This will provide more comprehensive training and support for users, facilitating smoother transitions and better adoption of new solutions

5. Boosting Business Transformation:

- WalkMe's solutions will complement SAP's Business Transformation Management portfolio, including SAP Signavio and SAP LeanIX, by providing enhanced digital adoption capabilities.

This will help customers on their transformation journeys, ensuring they derive maximum value from their IT investments.

We believe that the WalkMe integration will significantly enhance the SAP Business AI offerings by providing advanced user guidance, integrating with AI assistants, supporting a wide range of applications, enhancing e-learning features, and boosting overall business transformation efforts.

About the Author

My name is Mike Davis and I have been managing and supporting transformational change within major corporates for over 30 years. I am a keen contributor to the digital agenda and would be very interested in supporting and advising on successfully delivering business transformation change programs. Feel free to review my LinkedIn profile and should you wish to have a brief confidential discussion, a project or program review or engagement for a bid or program delivery please do not hesitate in contacting me.

| LinkedIn | Twitter | www.mjd.net | FaceBook |

Want to comment privately? Please let us know!