SAP Jam Teleconference Notes: SAP’s Growth and Innovation Strategies
Blog: Forrester Blog for Business Process and Applications Professionals
Thanks to those of you that attended our SAP Jam Teleconference today, part of a series that will run throughout the week. For details on the next event in the series, see http://www.forrester.com/rb/teleconference/sap_jam_session_what_should_sap_clients/q/id/6292/t/1.
For those of you unable to attend, I will summarize some of the content that I presented on SAP’s overall growth and innovation strategy. SAP has a double-barreled product strategy focused on Growth and Innovation.
The Growth strategy rests heavily on the current Business Suite, which includes the core ERP product that is used by approximately 30,000 companies worldwide. SAP claims that it touches 60 percent of the world’s business transactions, which is hard to validate but not all that hard to believe. The main revenue source today is Support, which comprises 50% of the total revenues of the company at more than 5 billion Euros annually, and it grew by 15% in 2009. Other growth engines include:
- Analytics, which includes the Business Objects portfolio
- SME products, which consists of Business ByDesign, the SaaS product, Business One for small businesses and All-in-One, which is a preconfigured version of the enterprise ERP system.
- Industries, which are a key area of focus for growth that includes both development of new modules for the ERP system and acquisitions that bolster the portfolio in specific industry markets. Though not as aggressive as Oracle to date in acquisitions, look for SAP to step up its game here to drive revenue growth and verticalization.
Two other important strategic elements that we talked about during today’s SAP Jam Session included CRM and Sustainability, detailed by my colleagues Bill Band and Alex Peters, respectively.