Sap Analysis
Individual Selected Case Analysis
SAP® AG
E-SOLUTIONS FOR THE NEW, NEW ECONOMY
Electronic Commerce
Management 671
Radford University
April 2001
Karl Zartarian
Individual Selected Case Analysis
SAP AG: E-SOLUTIONS FOR THE NEW, NEW ECONOMY
Contents Page
I. INTRODUCTION 3
II. DESCRIPTION OF THE COMPANY 4
III. EVOLUTION OF THE E-BUSINESS PLATFORM 6
IV. DESCRIPTION OF THE INDUSTRY 8
V. ANALYSIS OF PORTER’S FIVE FORCES 10
VI. STEEP AND SWOT ANALYSIS 12
VII. BUSINESS MODEL 16
VIII. TARGET MARKETS 17
IX. COMPANY CORE COMPETENCIES 18
X. COMPANY AND INDUSTRY FINANCIAL INFORMATION 20
XI. KEY COMPANY CHALLENGES 22
XII. PROBLEM STATEMENT 23
XIII. STRATEGIES AND RECOMMENDED ACTIONS 24
XIV. SUMMARY 27
XV. REFERENCES 28
INTRODUCTION
The Internet and e-commerce have changed industry and the way companies’ performances are measured. We have heard for the past decade, “The world is shrinking.” This has never been truer than in today’s economy. SAP is a company that is striving to provide e-business solutions in order to help companies become more profitable in today’s competitive and volatile environment.
SAP’s most recent marketing campaign states, “Every business is an e-business, or soon will be.” Companies communicate with each other through E-Commerce both internally and externally. The Internet has escalated this communication process by supplying a venue for communication on a real-time basis. SAP has re-invented itself from a provider of Enterprise Resource Planning (ERP) software, to a provider of e-business solutions to enhance efficiency and reduce costs.
When the “dot.com” fervor arrived, the fundamentals of evaluating a business were neglected. The focus was on potential earnings versus current profitability. Profit was an afterthought and investors and analysts could have been accused of being irresponsible. SAP stresses “The NEW, NEW ECONOMY” by placing the focus back on profitability, the traditional rules
SAP® AG
E-SOLUTIONS FOR THE NEW, NEW ECONOMY
Electronic Commerce
Management 671
Radford University
April 2001
Karl Zartarian
Individual Selected Case Analysis
SAP AG: E-SOLUTIONS FOR THE NEW, NEW ECONOMY
Contents Page
I. INTRODUCTION 3
II. DESCRIPTION OF THE COMPANY 4
III. EVOLUTION OF THE E-BUSINESS PLATFORM 6
IV. DESCRIPTION OF THE INDUSTRY 8
V. ANALYSIS OF PORTER’S FIVE FORCES 10
VI. STEEP AND SWOT ANALYSIS 12
VII. BUSINESS MODEL 16
VIII. TARGET MARKETS 17
IX. COMPANY CORE COMPETENCIES 18
X. COMPANY AND INDUSTRY FINANCIAL INFORMATION 20
XI. KEY COMPANY CHALLENGES 22
XII. PROBLEM STATEMENT 23
XIII. STRATEGIES AND RECOMMENDED ACTIONS 24
XIV. SUMMARY 27
XV. REFERENCES 28
INTRODUCTION
The Internet and e-commerce have changed industry and the way companies’ performances are measured. We have heard for the past decade, “The world is shrinking.” This has never been truer than in today’s economy. SAP is a company that is striving to provide e-business solutions in order to help companies become more profitable in today’s competitive and volatile environment.
SAP’s most recent marketing campaign states, “Every business is an e-business, or soon will be.” Companies communicate with each other through E-Commerce both internally and externally. The Internet has escalated this communication process by supplying a venue for communication on a real-time basis. SAP has re-invented itself from a provider of Enterprise Resource Planning (ERP) software, to a provider of e-business solutions to enhance efficiency and reduce costs.
When the “dot.com” fervor arrived, the fundamentals of evaluating a business were neglected. The focus was on potential earnings versus current profitability. Profit was an afterthought and investors and analysts could have been accused of being irresponsible. SAP stresses “The NEW, NEW ECONOMY” by placing the focus back on profitability, the traditional rules
References: 2. SEC filing 20-F ( Annual Report for Foreign Private Issuers; www.freeedgar.com; March 28, 2001 3 4. SAP “SOLUTIONS FOR THE NEW, NEW ECONOMY”; http://www.sap.com/solutions/index.htm; Accessed April 11, 2001 5 6. SAP Executive Report; Hoover’s Inc.; April 5, 2001 7 8. Supply chain hits high gear; Heather Harreld; InfoWorld; March 5, 2001 9 10. Bush Administration Policies on E-Commerce; Gerald McNerney; AMR Research; January 18, 2001 11 12. Insight into technology investing – SAP thrives after restructuring.; William Schaff; InformationWeek; February 19, 2001 13 14. SAP TO BUY TOPTIER FOR $400M; InformationWeek; April 2, 2001 15 16. SAP picks up pace of transformation.; Jeff Burt; Renee Boucher Ferguson; eWEEK; April 2, 2001 17 18. Garner Remains Optimistic; The Industry Standard; April 18, 2001; Accessed from www.sapinfo.de/template/tp_printout_artikel.php3?LFDNR=5132 19 20. SAP AG CEO Interview; Jan Hopkins; CNNfn: Street Sweep; April 4, 2001 21 22. WSJ: SAP In Pact With Yahoo, To Form Separate US Unit; Neal E. Boudette; Dow Jones International News; April 4, 2001 23 24. SAP Wastes No Time Reaching TopTier; Randy Weston and Bruce Richardson; AMR Research; April 4, 2001 25 26. Rivals build up B2B platforms.; Arif Mohamed; IT Week (UK); March 5, 2001 27 28. FINANCIALS: SAP says quarterly results to top predictions.; Carolyn A. April; InfoWorld, January 15, 2001 29 30. Brazil: SAP targets medium and small sized companies.; South American Business Information; April 16, 2001 31 32. Baby, you can drive my exchange – Despite a few dents from a wild ride down Wall Street, Commerce One still sees a bright future for digital marketplaces.; Sean Dugan; Network Computing; April 2, 2001 -----------------------